Wholesaler Supreme has acquired meal replacement and weight management brand Slimfast in what analysts describe as an immediately earnings-boosting transaction.
The agreement, which saw Supreme purchase Slimfast º£½ÇÊÓƵ and Europe for £20.1m, propelled the acquiring company's share price upwards by more than six per cent during early trading, as reported by .
Slimfast is recognised for its meal replacement shakes, bars, snacks and weight loss programmes.
The brand's º£½ÇÊÓƵ and European operations generated unaudited turnover of £25.5m and adjusted gross profit of £9.7m in 2024.
Shore Capital equity analyst Darren Shirley described the acquisition as "further evidence of Supreme's strong entrepreneurial spirit", noting that he "welcome[d] further diversification from the º£½ÇÊÓƵ vaping market."
The deal will see Supreme expand deeper into the health and wellness sector.
Whilst it presently derives the bulk of its revenue from vape sales, Supreme already distributes various sports nutrition and supplement products including Sci-Mx, Battle Bites and Sealions. The group also owns Typhoo Tea.
"[Slimfast will] help further dilute the importance of vaping whilst bolstering the Group's presence in a fast-growing market where Supreme has only limited exposure," Zeus analysts commented.
Slimfast presents "meaningful synergies", Zeus analysts noted, with powdered product manufacturing brought in-house and additional cross-selling opportunities through Supreme's distribution network. The º£½ÇÊÓƵ weight management market is projected to expand at an annual rate of 9 per cent until 2027, reaching a value of £1.5bn, as per Grand View Research.
Slimfast 'perfectly positioned' for GLP-1 surge
Supreme has stated that SlimFast is "ideally placed to capitalise on the growing demand for GLP-1 products", which necessitate nutritional and protein supplementation both during treatment and as an optimal 'follow-on' to treatment.
GLP-1, or glucagon-like peptide-1, is a natural hormone that aids in the regulation of blood sugar levels and appetite.
Currently, 4 per cent of º£½ÇÊÓƵ households have at least one member utilising GLP-1, the active component in weight-loss medications.
The proportion of º£½ÇÊÓƵ households with at least one GLP-1 user has nearly doubled from 2.3 per cent to 4.1 per cent over the past year.
Its rising popularity has already begun to impact grocery sales, with categories such as crisps, sweets, and peanut butter being most affected.
The market for weight-loss drugs reached approximately $50bn (£36bn) by the end of 2024 and is predicted to double by the decade's end, according to Morgan Stanley.
Sandy Chadha, Supreme's chief executive, stated that the commercial opportunities presented by Slimfast make it an "ideal addition" to the company.
