Flavor manufacturer THG has sold its Claremont facility for a £103 million price tag.
THG Sells Flavor Lab to Reduce Financial Leverage and Focus on Core Strengths
London-listed THG has announced the sale of its Claremont Ingredients lab for approximately £103 million to Nactarome Group. The sale, which represents a significant return on THG’s original £52 million investment made in late 2020, is part of a broader strategy to streamline the group and focus on core strengths like Myprotein.
Claremont has been instrumental in building Myprotein's global licensing franchise, contributing around £14 million in revenue in 2024 with about £7 million adjusted EBITDA and minimal capital expenditure (~£1 million annually). Following the disposal, THG expects its group EBITDA to decline by approximately £5 million in FY 2025 and £10 million in FY 2026.
However, the proceeds from the sale will help reduce net debt, lowering net leverage and borrowing costs, supporting THG’s goal to achieve a neutral net cash/net debt position. This disposal partially offsets a decline in overall group earnings, as THG projects a double-digit drop in half-year 2025 earnings, reflecting challenges such as higher whey prices and other operational pressures.
On the positive side, THG Nutrition delivered double-digit revenue growth in June and July, with the company's CEO, Matthew Moulding, stating that the "time was right" to sell Claremont. My Protein will retain a long-term supply contract with the lab, ensuring continuity in flavour innovation for its products.
Unfortunately, no further information was provided about the specific brands affected by the higher whey prices or the industry they operate in. Similarly, no information was provided about the specific brands that Claremont has partnered with or the industry they operate in.
THG's decision to sell Claremont comes at a time when the global demand for nutrition products matches new supply capacity, leading to market-wide nutrition consumer price increases. Whey commodity prices have remained stable at record highs during the last 12 months.
City AM is part of THG Ingenuity, which was demerged from THG at the beginning of the year. No information was provided about Nactarome Group, the company buying Claremont. Earnings in 2025 and 2026 will be reduced by £5m and £10m respectively, following the sale.
[1] THG Announces Sale of Claremont Ingredients for £103m [2] THG Sells Claremont to Nactarome Group for £103m [3] THG Reduces Financial Leverage with Sale of Claremont [4] THG's Claremont Investment Yields £103m Sale to Nactarome Group [5] THG Nutrition Delivers Double-Digit Revenue Growth in June and July [6] THG's Earnings Impacted by Higher Whey Prices and Operational Pressures [7] THG's Claremont Sale Partially Offsets Decline in Overall Group Earnings [8] THG's Claremont Sale Contributes to Reducing Net Debt and Lowering Borrowing Costs [9] THG's Claremont Sale Aligns with Strategy to Streamline the Group and Focus on Core Strengths [10] THG's Claremont Sale Positive for THG’s Financial Flexibility [11] THG's Claremont Sale Impacts EBITDA Contribution by £5-10 million in Coming Years [12] THG's Claremont Sale Marks a Significant Return on Investment [13] THG's Claremont Sale Ensures Continuity in Flavour Innovation for My Protein Products [14] THG's Claremont Sale Partially Offsets Challenges Such as Higher Whey Prices and Operational Pressures [15] THG's Claremont Sale Does Not Affect Myprotein's Long-Term Supply Contract with the Lab [16] THG's Claremont Sale Does Not Provide Information About the Specific Brands Affected by the Higher Whey Prices or the Industry They Operate In [17] THG's Claremont Sale Does Not Provide Information About the Specific Brands That Claremont Has Partnered With or the Industry They Operate In [18] THG's Claremont Sale Occurs at a Time When the Global Demand for Nutrition Products Matches New Supply Capacity, Leading to Market-Wide Nutrition Consumer Price Increases [19] THG's Claremont Sale Occurs at a Time When Whey Commodity Prices Have Remained Stable at Record Highs During the Last 12 Months [20] THG's Claremont Sale Occurs at a Time When THG Nutrition Delivers Double-Digit Revenue Growth in June and July [21] THG's Claremont Sale Occurs at a Time When City AM is Part of THG Ingenuity, Which was Demerged from THG at the Beginning of the Year [22] THG's Claremont Sale Occurs at a Time When No Information was Provided About Nactarome Group, the Company Buying Claremont [23] THG's Claremont Sale Occurs at a Time When Earnings in 2025 and 2026 will be Reduced by £5m and £10m respectively, following the sale [24] THG's Claremont Sale Occurs at a Time When THG Announced a Decrease in Half Year EBITDA from £37.1m to £24m [25] THG's Claremont Sale Occurs at a Time When Claremont has been Instrumental in Building Myprotein's Global Licensing Franchise
[1] The sale of Claremont Ingredients, a significant player in the food-and-drink industry, marks a strategic move for THG to focus on core strengths such as Myprotein.[2] With the sale of Claremont to Nactarome Group for £103 million, THG is working towards reducing its financial leverage in the sports and lifestyle sector.[3] The sale of Claremont Ingredients will not only impact THG's business earnings but also its overall industry standing, as it is a key player in the food-and-drink sector.
