Battle Creek-based Kellogg Co. today announced an agreement to acquire Chicago Bar Co., which produces RXBAR, a line of clean-label protein bars made with a base of egg whites, fruit, and nuts.
With an acquisition price of $600 million, RXBAR will continue to operate independently as a standalone business. As a result of the acquisition, the company will be able to leverage Kellogg’s scale and resources to continue driving growth.
“RXBAR is a unique and innovative company. Its values, people, and cutting-edge approach represent an exciting opportunity for our business. Adding a pioneer in clean-label, high-protein snacking to our portfolio bolsters our already strong wholesome snacks offering,” says Steve Cahillane, CEO of Kellogg Co. “With its strong millennial consumption and diversified channel presence including e-commerce, RXBAR is perfectly positioned to perform well against future food trends.”
Using whole food ingredients, each RXBAR provides 12 grams of protein and between 210 and 220 calories, making them popular before or after workouts, between meals, or for a quick breakfast. RXBARS are available in 11 different flavors, with seasonal and limited-time offerings, and are distributed nationwide. The company also recently launched RXBAR Kids, which contain the same core ingredients in kid-friendly flavors and portions.
The acquisition is subject to customary closing conditions and is expected to be completed by the end of 2017. RXBAR’s net sales are expected to be approximately $120 million this year, and the multiple on projected 2018 earnings before interest, tax, depreciation, and amortization to be approximately $120 million this year.
Excluding one-time costs, the acquisition is expected to be immaterial to Kellogg’s earnings per share in 2017 and 2018.