Zacks analysts view GlaxoSmithKline's recent acquisition spree, but CEO sees slow down in M&A

Analysts at US financial services group Zacks Investment Research have issued a note reviewing UK drug giant GlaxoSmithKline’s (LSE: GSK) recent buying spree, pointing first to its plans to acquire UK-based Maxinutrition Group for a cash payment of about £162 million ($258 million). The deal includes the repayment of outstanding debt.

As per the terms of the deal, GSK will acquire Maxinutrition’s brands thereby extending its reach in the UK and European sports nutrition market. Maxinutrition will become a part of GSK’s Nutritional Healthcare business. The company plans to leverage its marketing excellence and R&D innovation capability to foster growth of Maxinutrition in the UK, Europe and international markets. Maxinutrition, which recorded sales of about £36 million for the fiscal year ended April 2010, is one of Europe’s leading sports nutrition company.

Earlier in the month, GSK announced its intention to acquire the Chinese pharmaceutical company Nanjing MeiRui Pharma for about $70 million in cash (The Pharma Letter December 8).