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Kellogg to purchase Chicago Bar
Posted on Monday, 09 October 2017 07:23
Kellogg is acquiring Chicago Bar, the company behind nutritious bar brand Rxbar, for USD 600.00 million to expand its product offerings.
The target is currently being led by co-founders Peter Rahal and Jared Smith, who will remain as chief executive and chief risk officer, respectively, following the transaction.
Completion is expected to occur by the end of this year, subject to customary closing conditions.
Founded in 2012, Chicago Bar manufactures protein bars and snack packs with a wide range of flavours, including peanut butter chocolate, blueberry, pumpkin spice and maple sea salt.
It is expected to yield net sales of about USD 120.00 million in 2017, with multiples on earnings before interest, tax, depreciation and amortisation in 2018 projected to range between 12x and 14x.
Kellogg is a producer of breakfast cereal, crackers and cookies and is listed on the New York Stock Exchange.
Its product portfolio consists of global brands such as Pringles, Cheez-It, Famous Amos and Corn Flakes.
The public group employs more than 37,000 people globally and operates manufacturing facilities in the US, Canada, Australia, Japan and India, among other locations.
Commenting on the transaction, Kellogg’s chief executive Steve Cahillane said: “With its strong millennial consumption and diversified channel presence including e-commerce, Rxbar is perfectly positioned to perform well against future food trends.”
In another expansion effort, the acquiror last year snapped up 51.0 per cent of Austrian breakfast cereal maker Vita + Naturprodukte for an undisclosed sum from Wolfgang Fojtl and Segnal Beteiligungs.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,340 deals targeting food manufacturers announced worldwide since the beginning of this year.
The largest of these was Reckitt Benckiser’s USD 17.90 billion acquisition of Mead Johnson Nutrition, which completed in June.
© Zephus Ltd