Sector News

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

August 23, 2019
Food & Drink

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

Related News

January 23, 2020

The art and science of tracking food trends

Food & Drink

LinkedIn Twitter FacebookAmong the top foods predicted to post strong growth over the next four years are cultured butter, hard seltzer, turmeric and Tajin seasoning, according to Datassential. Kombucha, matcha […]

January 21, 2020

Grain-based foods industry seeks ways to slow pace of category losses

Food & Drink

LinkedIn Twitter FacebookThat the grain-based foods industry is losing market share to other food categories isn’t new. The pace at which the losses are transpiring and the urgency with which […]

January 21, 2020

Asda partners with Kellogg and Unilever for refill store trial

Food & Drink

LinkedIn Twitter FacebookAsda has announced plans to trial a new sustainability store in Leeds where shoppers can refill containers of products such as coffee, rice and pasta. The retailer has […]