Atkins owner forks out $1bn to add protein bar maker to its portfolio

Quest is known for its protein bars – ranking No. 2 on the Inc. 500 list of the fastest growing US companies in 2014 – but also produces chips, cookies, pizzas and other foods with added protein.

Simply Good is also a maker of protein bars, sold under the brand names Atkins and Simply Protein.

Quest has a strong appeal among younger, urban consumers, while Atkins attracts to an older, suburban crowd.

Simply Good’s president and CEO Joseph Scalzo said the deal “delivers on our strategy to become a broader nutritional snacking company.​

“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.”​

According to a statement, the pairing of Atkins and Quest will result in a nutritional snacking company with combined net sales of more than $800m annually. Simply Good said Quest expects to generate about $345m in sales and Ebitda of $50m this year.

Simply Good’s board has approved the acquisition, which will be funded with $225mn in cash and financing from Barclays, Credit Suisse and Goldman Sachs.

“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,”​ said Dave Ritterbush, president and CEO of Quest Nutrition.

The deal is expected to close by the end of 2019.