Kellogg Co. will bag protein bar maker Chicago Bar Co. LLC in a deal worth $600 million including tax benefits, the cereal giant said Friday.
The bar company, which does business under the name of its "clean food" RXBARs, will operate as an independent property but will leverage Kellogg's resources and reach in its favor, the announcement said.
"We carefully considered who the right partner would be for RXBAR's future," the company's CEO and co-founder Peter Rahal said in the statement. "We have always been committed to delivering the highest quality products that taste great, and being radically candid and transparent with our consumers, and these priorities remain. Joining Kellogg is not only a great cultural fit, but it provides us with the tools and resources to accelerate our growth so the brand can scale even faster than it is today."
Praising RXBAR as a “unique and innovative company,” Kellogg CEO Steven A. Cahillane called the deal an “excellent strategic fit."
“Its values, people and cutting-edge approach represent an exciting opportunity for our business,” he said. “With its strong millennial consumption and diversified channel presence including e-commerce, RXBAR is perfectly positioned to perform well against future food trends.”
RXBARs, made with egg whites, fruits and nuts, come in 11 different flavors and contain 12 grams of protein and 210 to 220 calories. Friday’s announcement noted that the company had recently launched a child-friendly line called RXBAR Kids.
Kellogg’s announcement is the latest in a flurry of food and beverage industry deal action.
On Oct. 3, France-based private equity firm PAI Partners SAS said it lobbed a sweetened takeover bid at Refresco Group NV, this time offering to pay €1.6 billion ($1.88 billion) billion for the Dutch soft drink bottler and the beverage company it recently agreed to pick up.
Cereal stalwart Post Holdings Inc. announced Sept. 19 that it had struck a deal to buy the packaged food and food-service businesses of Bob Evans Farms Inc. in a deal worth $1.5 billion, months after the Bob Evans restaurant division was sold for $565 million to a private equity buyer.
On Sept. 12, agribusiness giant Bunge Ltd. said it would pay $946 million to take over a 70 percent stake in food oil manufacturer IOI Loders Croklaan from its parent company.
Representatives for Kellogg and RXBAR could not be immediately be reached for comment Friday.
Kellogg is represented by Keith S. Crow, Theodore A. Peto and Adam T. Clifford of Kirkland & Ellis LLP.
Counsel information for RXBAR was not immediately available Friday.
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