The Simply Good Foods Co., Denver, Colo., announced plans to acquire Quest Nutrition, LLC, El Segundo, Calif., for $1 billion in cash.
The pairing of Quest with its Atkins brand positions Simply Good Foods to benefit from consumer mega trends related to healthy eating and better nutrition.
“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,” says Joseph Scalzo, president and CEO of Simply Good Foods. “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. 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. Quest is supported by an innovative spirit and dedicated employees committed to supporting consumers’ healthy lifestyles, and both Quest and our existing brands will benefit from sharing best practices and insights in marketing, distribution and supply chain management to deliver on our commitment to customers and consumers. Upon the closing of the transaction we look forward to working with Dave Ritterbush, president and CEO of Quest, and his team, and welcoming Dave to the Simply Good Foods board of directors.”
“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,” says Ritterbush. “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. I’m incredibly proud of everything that Quest and our team has accomplished and excited for the next phase of our growth by joining a larger, more diverse nutritional snacking company.”
This transaction will also enable Simply Good Foods to benefit from Quest’s e-commerce, social platforms, specialty and other non-tracked distribution channels, while Quest will benefit from Simply Good Foods’ expertise in building distribution in food/drug/mass channels and growing brand awareness via broad reach media.