10.8x cash multiple for investor YFM Equity Partners

Nutrition firm Protein Works has been acquired by dairy giant Lactalis in a move bosses say will allow it to keep growing globally.

Mark Coxhead founded Protein Works in his back bedroom in 2012 and since then has sold some 500m shakes. The group was backed by YFM Equity Partners in 2019 and today has annual revenues of some £55m, selling products including protein shakes, wellness supplements and snacks.

The business moved into its 100,000 sq ft PW Campus manufacturing and distribution site, in Speke, last year. All Protein Works staff have now joined Lactalis, which plans to keep the company’s brand and identity.

French group Lactalis bills itself as the world’s biggest dairy group, collecting 23.1bn litres of milk a year worldwide. It has more than 85,000 employees and sells in 150 countries. Existing Lactalis brands include Kraft, Président, and Galbani.

Protein Works founder Mark Coxhead said: “It’s been an incredible ride for both me and Protein Works over the last 15 years. Seeing the brand in rude health and ready for its next phase of exciting growth makes me very proud. With such a talented team, now backed by Lactalis, the sky is the limit for the brand I started all those years ago in my spare bedroom!”

Protein Works operates a fully integrated model, with products manufactured at its recently opened, state-of-the-art facility in Speke, Liverpool and distributed through its direct-to-consumer UK and native EU websites. The brand has a strong connection with its c.3m customers and has built a loyal following, which has helped it establish a solid position in the United Kingdom. It also operates across several European markets, including Germany, France, Ireland and Italy, to name a few.

Laura Keir CEO of Protein Works, added: “Our acquisition by Lactalis is a very exciting new chapter in the Protein Works story. There are natural synergies between the two businesses, and a deep care for quality, customers and our teams.

“The move allows us to accelerate the growth of the Protein Works brand and reach new customers, whilst providing new expertise to the group as a whole. I am excited for what this acquisition will mean for our customers and the opportunities it will provide for our brand, our amazing team at PW Campus and our partners.

“As we say at Protein Works, ‘Onwards!’”

Nicola McQuaid, portfolio partner at YFM, and Protein Works Board member, added: “Protein Works has been one of the standout investments in our portfolio, and a 10.8x cash multiple reflects seven years of our hands-on partnership, backing an exceptional team.

“We identified the opportunity, backed the brand’s move to serve a mainstream lifestyle nutrition customer, supported the PW Campus investment and the team’s continued push into international markets, taking the business from £13m to £55m in revenue and building something that ultimately attracted the world’s leading dairy company.

“This is what backing the right regional business looks like, and we are proud of what we delivered together.”

Houlihan Lokey acted as exclusive corporate finance advisor to the shareholders, while DWF acted as legal counsel.