The Simply Good Foods Company to acquire Quest Nutrition for US$1bn

USA – Nutritional foods and snacking producer, The Simply Good Foods Company has secured a deal to acquire protein snack maker Quest Nutrition for US$1 billion.

Quest is a healthy lifestyle food company which sells a range of high-protein bars, pizzas, cookies and chips, expects to post net sales of US$345 million and adjusted EBITDA of US$50 million this year.

Simply Good Foods, the maker of Atkins-branded food products believes the transaction will achieve US$20 million in cost synergies over three years.

The pairing of Atkins and Quest unites well-established brands with attractive growth profiles that results in a leading nutritional snacking company with combined estimated 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 Scalzo, president and CEO of Simply Good Foods.

“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.

“Quest is supported by an innovative spirit and dedicated employees committed to supporting consumers’ healthy lifestyles, and both Quest and our existing brands will benefit from sharing best practices and insights in marketing, distribution and supply chain management to deliver on our commitment to customers and consumers.

“Upon the closing of the transaction, we look forward to working with Dave Ritterbush, president and chief executive officer of Quest, and his team.”

Ritterbush added: “We are excited to join the Simply Good Foods family and I’m personally pleased to be joining the Simply Good Foods board of directors upon closing, as we collectively drive the next stage of Quest’s 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.

“As part of Simply Good Foods, Quest will benefit from the combination of two great organisations 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.”

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