Sector News

The Simply Good Foods Company acquires Quest Nutrition for $1bn

August 23, 2019
Consumer Packaged Goods

The Simply Good Foods Company, the owner of Atkins-branded food products, has secured a deal to acquire protein snack maker Quest Nutrition for $1 billion.

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

Simply Good Foods believes the transaction will achieve $20 million in cost synergies over three years.

Denver-headquartered Simply Good highlighted Quest’s “extremely loyal” following and favourable demographic profile with strong appeal among consumers 18-44 years old, and almost no overlap with the Atkins consumer.

“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.”

Source: FoodBev

comments closed

Related News

December 3, 2023

‘Hangover Beauty’ tipped to be top trend in 2024 – WGSN

Consumer Packaged Goods

A new wave of brands is emerging that promotes indulgence and rejects the notion of sacrifice. Low-maintenance “hangover” beauty products are designed to address the effects of late nights and partying without judgment or hassle, and even include cosmetics that are formulated in a way that means you can fall asleep in your makeup without feeling guilty.

December 3, 2023

Diageo transforming Captain Morgan and Smirnoff distribution with circular packaging strategy

Consumer Packaged Goods

The pilot will allow the company to scale circular packaging in about 18 markets over the next three years, an approach that jumps on the success of similar efforts in the company’s Indonesia ecoSPIRITS program, which launched in 2022 and is active in 38 bars.

December 3, 2023

Unilever CEO: We will stop ‘force fitting’ purpose to our brands

Consumer Packaged Goods

Unilever’s focus on purpose across its brands has been a source of criticism from some of its investors. Its new CEO Hein Schumacher says the company now recognises there are some brands where the concept is simply not relevant.

How can we help you?

We're easy to reach