Lactalis Acquires Protein Works, Marking YFM’s Successful Exit

Lactalis, the world’s leading dairy company, has completed the acquisition of Protein Works, a Liverpool-based sports and lifestyle nutrition brand. This transaction was announced on June 1, 2026 and marks the exit of YFM Equity Partners, which backed Protein Works since 2019 and helped scale the business from £13 million to approximately £55 million in annual revenue.

YFM’s investment in Protein Works began with a focus on the company’s strong direct-to-consumer model, loyal customer base, and unique manufacturing capabilities. At the time, Protein Works operated primarily within the UK sports nutrition market. Over seven years, YFM supported a strategic repositioning of the brand into the broader lifestyle nutrition sector, a faster-growing and larger market segment.

Significant operational investments accompanied this strategic shift. Notably, Protein Works developed the Speke campus in Liverpool, a purpose-built manufacturing and fulfillment facility representing an £11 million investment. This infrastructure provided the capacity and control necessary to support scalable growth and international expansion.

Under YFM’s partnership, Protein Works expanded its customer base to over 2.5 million and established a meaningful international presence. The company’s gross margins improved substantially, reflecting operational efficiencies and enhanced product offerings.

The acquisition by Lactalis validates Protein Works’ transformation into a sizeable and mature business. Lactalis gains access to Protein Works’ direct-to-consumer channels, manufacturing capabilities, and the Speke facility, positioning the combined entity to accelerate growth in the lifestyle nutrition market globally.

Protein Works was founded as a sports nutrition brand with a direct-to-consumer business model and strong manufacturing expertise. Lactalis, headquartered in France, is a multinational leader in dairy products with a broad global footprint and extensive distribution networks.

YFM Equity Partners’ Buyout Fund strategy focuses on identifying founder-led regional businesses with growth potential and providing capital and expertise to unlock value. The 10.8x cash multiple achieved on this exit reflects the fund’s hands-on approach and the company’s operational progress.

Strategically, the acquisition enables Lactalis to cross-sell its dairy products through Protein Works’ established direct-to-consumer channels and expand Protein Works’ lifestyle nutrition products into Lactalis’ international markets. Operational synergies include economies of scale in procurement, shared manufacturing infrastructure, and enhanced research and development capabilities combining dairy expertise with nutrition innovation.

The deal strengthens Lactalis’ position in the fast-growing lifestyle nutrition segment, complementing its core dairy portfolio. It also accelerates industry consolidation and increases competitive pressure on other nutrition and dairy companies.

Looking ahead, integration efforts will focus on aligning corporate cultures, integrating IT and supply chain systems, and maintaining Protein Works’ brand identity while scaling internationally. The acquisition opens new growth opportunities through broader distribution, product innovation, and operational efficiencies.

Overall, the transaction represents a significant milestone for both companies and underscores the value creation potential of targeted private equity partnerships in the nutrition sector.