The acquisition by Lactalis comes as Protein Works eyes its next stage of growth.
The Liverpool-based business operates on a direct to consumer (D2C) model, offering a range of protein-centric shakes, supplements and snacks.
Founded in 2012 by Mark Coxhead, it secured backing from YFM Equity Partners in 2019 which has now exited the business following the deal.
Today, Protein Works makes around £55 million in annual revenue and has circa three million customers.
Snapped up for an undisclosed sum, the acquisition will see Lactalis’ scale and expertise in brand, supply chain and FMCG grocery distribution coming together with Protein Works’ experience in functional nutrition and D2C capabilities.
“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,” commented Nicola McQuaid, portfolio partner at YFM, and Protein Works Board member.
“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 £13 million to £55 million 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.”
The Protein Works operates a fully integrated model, with products manufactured at its recently opened, facility in Speke, Liverpool and distributed through its direct-to-consumer UK and native EU websites.
Lactalis is now looking to accelerate the brand’s growth both in the UK and internationally.
The deal will see all current Protein Work employees move over to the Lactalis Group effective today (1 June), with the brand’s identity preserved.
Laura Keir CEO of Protein Works and founder Mark Coxhead said the move marks an “exciting” new chapter of growth for the business.
“There are natural synergies between the two businesses, and a deep care for quality, customers and our teams,” continued Keir.
“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.”
Houlihan Lokey acted as exclusive corporate finance advisor to the shareholders, advising on all aspects of the preparation, structuring, and negotiation of the transaction. DWF acted as legal counsel.
