The deal values Sterling at $60 million plus deferred consideration, Glanbia revealed.
The nutrition business, owned by dairy group Glanbia, said the acquisition expands its presence in dairy bioactives. Colostrum is an ingredient used in the immunity and gut health segments of the health and wellness market. According to Glanbia, demand for the ingredient is ‘well established in multiple markets’, in particular Asia markets. It is used in pediatric and medical nutrition, dietary supplements and sports nutrition.
“The acquisition of Sterling Technology enhances our bioactive solutions portfolio to support our customers’ needs and growth ambitions,” said Glanbia Nutritionals CEO Brian Phelan. “We are excited to bring on board the Sterling team and their expertise with this highly beneficial ingredient.”
Founded in 1987, the South Dakota based Sterling Technology employs approximately 60 employees. When contacted by DairyReporter, Glanbia declined to comment on whether it expects to benefit from any sales or cost synergies and further financial details were not disclosed.
This is the latest US acquisition from the Irish dairy-to-nutrition group. In recent months Glanbia Nutritionals also acquired PacMoore Processing Technologies, based in Mooresville, Ind. The deal, for $53m, included PacMore’s R&D facility in Gridley, Ill.
PacMoore Processing Technologies specializes in extrusion, spray-drying and blending. “The addition of these technologies will strengthen Glanbia Nutritionals’ ability to support its customers in the healthy snacking and related nutrition segments. In addition, the knowledge and experience of the combined teams will further enhance its ability to deliver optimized ingredient systems,” the company said in a statement.