Glanbia has said it will pay €14.5 million to acquire the assets and goodwill of a privately owned Germany company, Kortus Food Ingredients Services.

The company, which is based in Orsingen-Nenzingen in southern Germany, specialises in the production, research and development of customised nutrients systems for the infant formula, clinical nutrition and dietetics markets.

Glanbia will pay €10.5 million in cash with a further deferred payment of €4 million, of which €2 million will be subject to the achievement of a pre-determined performance target.

A spokeswoman for Glanbia described the acquisition as "a strategic move, part of building our nutritionals business."

The acquisition is the first on the higher margin nutritional ingredients side of the business, an area that Glanbia has been developing in recent years.

Shares in the company rose by 13 cents, or nearly 5 per cent, to €2.75 as the market welcomed the deal.

"They are moving up the value chain into food ingredients," said one market source.

"In two to three years, more of their business will be at the higher margin than the basic commodity end."