Applied Nutrition (LSE:APN) shares bulked up some 10%, adding 24.76p to 268.26p, after the whey and supplements group upgraded its FY26 revenue forecast, announced a $16m acquisition, and unveiled a collab with a pair of Mondelēz brands.
The UK-headquartered sports nutrition, health and wellness group has acquired the trade and majority of assets of US-based Nutrablend Group for $16m (c.£12m), financed from existing cash, buying a 107,000 sq ft Buffalo facility independently valued at c.$7m alongside equipment and inventory.
The board said trading in the year-to-date remains strong and that the EBITDA contribution from the Nutrablend acquisition is not expected to be meaningful for FY26.
Applied Nutrition says the Buffalo site provides production capacity of up to c.$300m of revenue per year, will move current US powder manufacture in-house, and creates cross-sell and white-label opportunities under a new AN Labz division.
The group expects the deal to be earnings-enhancing in FY27, contributing at least an additional $30m of revenue at a high single-digit EBITDA margin, with roughly 65% of that revenue from white-label manufacturing.
Applied Nutrition has also signed a North American flavour collaboration with Mondelēz International to develop and manufacture SOUR PATCH KIDS® and SWEDISH FISH® flavoured supplement products, which will initially be stocked in 2,200 Walmart and 1,300 GNC stores from August 2026.
The group has amended its revolving credit facility to extend available credit to £30m but has not drawn on the facility.
"The acquisition of a US manufacturing site significantly strengthens our ability to support ongoing growth in the region and provides us with the ability to expand our North American offering," said Thomas Ryder, Chief Executive Officer.
The Group will provide a further update on performance when it announces its FY26 trading update in August.
