UK sports-nutrition group Science in Sport has expressed its interest in a tentative takeover approach from private-equity firm BD-Capital.
In a stock-exchange filing, Science in Sport said BD-Capital had floated a potential bid for the company of £0.34 ($0.45) a share.
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The company, which markets sports-nutrition products under brands including SiS and PhD Nutrition, said the approach “may or may not result in an offer” in the business.
However, Science in Sport added an independent board committee had “carefully evaluated the indicative terms of the possible offer” and would be “minded to recommend” it if BD-Capital makes a “firm intention” to bid.
The private-equity firm has until 14 May to say whether or not it plans to do so.
In 2023, BD-Capital made an investment in Netherlands-based food supplements company Bonusan. It also has gut-health food supplement provider Symprove in its portfolio.
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By GlobalDataIn January, Science in Sport issued an unaudited trading update for 2024, along with its outlook for 2025. It said it expected its annual revenue to have fallen by 17.5% to £51.9m in 2024.
However, in the brief update, the company said it expected its adjusted EBITDA to more than double to £4.2m.
Science in Sport said it had “continued to see improvements in its operational and financial performance” after its interim results were announced in September.
Looking ahead, it said, “trading has started well”, adding it expected the “return to growth seen in the second half of 2024″ to continue into 2025 “together with the full effects of the cost savings made in 2024”.
In the first half of 2024, Science in Sport generated revenue of £25.7m, down 25.4% year-on-year.
Gross profit fell by 20.8% to £11.5m. Underlying EBITDA rose by 74% to £2m, with the EBITDA margin increasing from 3.3% to 7.7%.
It ran up a loss for the period of £2.5m, compared to one of £3.3m in the first half of 2023.
