Simply Good Foods to acquire food company Quest Nutrition for $1bn

US-based nutritional foods and snacking products developer Simply Good Foods has signed a definitive agreement to acquire lifestyle food company Quest Nutrition in a deal valued at $1bn.

As part of the deal, a subsidiary of Simply Good Foods will acquire 100% of the equity of Voyage Holdings and VMG Quest Blocker (jointly referred to as Target) from the founders of Quest and other equity holders.

Simply Good Foods president and CEO Joseph Scalzo said: “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.”

Simply Good Foods offers a range of food products, including nutrition bars, snacks and confectionery under Atkins, SimplyProtein and Atkins Endulge brands.

Quest offers snack products, which contain high proteins with less sugar and net carbohydrates.

Atkins and Quest will together create a leading nutritional snacking company with combined estimated net sales of more than $800m.

To fund the deal, Simply Good Foods intends to use nearly $225m of cash on its balance sheet and committed financing from Barclays, Credit Suisse and Goldman Sachs.

Completion of the deal is subject to satisfaction of customary closing conditions and receipt of regulatory clearance and is expected to take place by the end of this year.

Quest Nutrition president and CEO Dave Ritterbush said: “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.”