The Simply Good Food Co.
a company known for its Atkins-branded low-carb foods, has agreed to purchased protein-bar company Quest Nutrition LLC for $1 billion in cash. Quest is known for its protein bars, but also offers chips, cookies, pizzas and other foods with added protein, as well as protein powder. Simply Good Chief Executive Joseph Scalzo said in the announcement that the deal “delivers on our strategy to become a broader nutritional snacking company.” Simply Good said that Quest expects annual revenue of $345 million and adjusted Ebitda of $50 million this year, and is expected to be accretive to cash earnings per share this year. Simply Good’s board has approved the acquisition, which will be funded with $225 million in cash on its balance sheet and financing from Barclays, Credit Suisse and Goldman Sachs. Simply Good hopes the deal will close by the end of the year, and expects $20 million in “synergies” over the next three years.
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