The Simply Good Foods Company has announced that it will acquire Quest Nutrition LLC for $1 billion in cash, or approximately $870 million net of tax benefits, on a cash-free and debt-free basis.
The Simply Good Foods Company (Denver, CO) has announced that it will acquire Quest Nutrition LLC (El Segundo, CA) for $1 billion in cash, or approximately $870 million net of tax benefits, on a cash-free and debt-free basis. Simply Good Foods is known for its Atkins-branded low-carb foods, and Quest Nutrition is known its protein bars and other snacks that contain a high protein content, including chips. Simply Good Foods estimates that the acquisition will result in the combined net sales of over $800 million and strong operating margins.
“The acquisition of Quest strengthens Simply Good Foods’ position within the nutritional snacking category by expanding our portfolio of brands and product offerings while also providing us with greater consumer and channel diversification,” said Joseph E. Scalzo, president and chief executive officer of Simply Good Foods, in a press release. “This combination delivers on our strategy to become a broader nutritional snacking company that offers consumers a broad range of brands and products that satisfy their nutritional needs. We also believe that our collective brands will benefit from increased cross-selling and marketing opportunities, as well as enhanced go-to-market strategies that will drive meaningful net sales and earnings growth.”
“The Simply Good Foods team has a strong track record in building leading nutrition brands and I feel that Quest will fit perfectly in their overall mission,” said Dave Ritterbush, president and CEO of Quest Nutrition, in a press release. “As part of Simply Good Foods, Quest will benefit from the combination of two great organizations focused on providing consumers with healthier food choices. I’m incredibly proud of everything that Quest and our team has accomplished and excited for the next phase of our growth by joining a larger, more diverse nutritional snacking company.”
The transaction is expected to close by the end of 2019.