The Simply Good Foods Company will acquire snack producer Quest Nutrition for the announced amount of USD1.0bn. Quest is a fast-growing active lifestyle brand with a highly engaged consumer base.
Its on-trend philosophy focuses on creating snacks that contain high protein levels with minimal sugars and net carbohydrates. The pairing of Atkins and Quest unites well-established brands with attractive growth profiles that result in a leading nutritional snacking company with combined estimated net sales of over USD800m and strong operating margins. This combination positions Simply Good Foods to continue to benefit from consumer megatrends related to healthy eating and better nutrition as the great-tasting Atkins and Quest products offer consumers a smart and convenient approach to healthier snacking.
“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. 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,” said Joseph E. Scalzo, president and CEO of Simply Good Foods.
He also added that their 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. Both Quest and their existing brands will benefit from sharing best practices and insights in marketing, distribution and supply chain management. He also welcomed Dave Ritterbush, president and CEO of Quest to the Simply Good Foods board of directors.
“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 organizations focused on providing consumers with healthier food choices,” Ritterbush said.