GlaxoSmithKline Buys Maxinutrition From Darwin PE

Pharmaceutical giant GlaxoSmithKline has agreed to pay 162 million pounds ($255 million) for private equity-backed Maxinutrition Group Holdings. GlaxoSmithKline will acquire 100% of the shares, providing an exit for Darwin Private Equity. UK-based Maxinutrition manufactures protein-enhanced nutrition products. London-based Darwin Private Equity acquired Maxinutrition in 2007.

PRESS RELEASE

GlaxoSmithKline (‘GSK’) and Maxinutrition Group Holdings Limited
(‘Maxinutrition’) today announced they have entered into an agreement for GSK to
acquire Maxinutrition, a UK company that manufactures protein-enhanced
functional nutrition products, from Darwin Private Equity. Subject to approval
from the Office of Fair Trading, GSK will acquire 100 per cent of the shares of
Maxinutrition for a cash consideration of approximately GBP162 million including
the repayment of outstanding debt.

Maxinutrition is Europe’s No. 1 sports nutrition company by market share and has
delivered sales growth of approximately 21% CAGR over the last 3 years. The
company recorded sales of approximately GBP36 million for the fiscal year ended
April 2010.

Under the terms of this agreement, GSK will acquire Maxinutrition’s brands,
including Maximuscle, the leading brand in the UK and European sports nutrition
market. The deal will extend GSK’s reach into wider categories, complementing
its existing Nutritional Healthcare business. GSK will also bring its marketing
excellence and R&D innovation capability to extend the growth of Maxinutrition
in the UK, European and International markets where the products are available.

John Clarke, President Consumer Healthcare, said, “This deal will give GSK a
strong presence in the fast developing protein-based sports nutrition market,
appealing across a broad spectrum of consumers from elite athletes to sports
participants and those seeking additional nutritional supplementation. GSK will
invest behind Maxinutrition’s science-proven products to extend the growth of
Maxinutrition within its UK and European footprint and expand to the global
marketplace, where GSK has existing infrastructure and capabilities.The
acquisition is a demonstration of GSK’s strategy to expand our Consumer
Healthcare business through appropriate bolt-on acquisitions which meet our
strict financial criteria.”

Peter Boddy, CEO, Maxinutrition, said, “Maxinutrition is a fast growing, focused
sports nutrition business with excellent growth prospects and a strong
management team – it’s a natural fit for GSK and its ambition to extend and
expand its Nutritional Healthcare business. GSK’s strong commercial and R&D
capability, coupled with theinvestments being made in expanding their global
nutritional healthcare franchise in new markets and territories, offer
tremendous new opportunities to develop the Maxinutrition brands and continue to
deliver impressive growth in the coming years.”