BATTLE CREEK, Mich. -- Kellogg has entered into an agreement to acquire Chicago Bar Co. LLC, maker of RXbar, a line of clean-label protein bars made with whole-food ingredients. RXbar will continue to operate independently as a stand-alone business, and will be able to leverage Kellogg's scale and resources to continue driving growth.
The acquisition is subject to customary conditions, and the companies said they expect it to close by the end of 2017. The purchase price is $600 million, or approximately $400 million net of tax benefits. RXbar expects net sales to be approximately $120 million in 2017.
"RXbar is a unique and innovative company. Its values, people and cutting-edge approach represent an exciting opportunity for our business," said Steve Cahillane, the newly appointed CEO of Battle Creek, Mich.-based Kellogg Co. "Adding a pioneer in clean-label, high-protein snacking to our portfolio bolsters our already strong wholesome snacks offering. RXbar is an excellent strategic fit for Kellogg as we pivot to growth. With its strong millennial consumption and diversified channel presence including e-commerce, RXbar is perfectly positioned to perform well against future food trends."
With a base of egg whites, fruit and nuts, each RXbar provides 12 grams of protein and 210-220 calories. RXbars are ideal for before and after workouts, in between meals, or as a quick, on-the-go breakfast, the company said. They are available in 11 flavors, with additional seasonal and limited-time varieties, and they are distributed in the United States. The Chicago-based company also recently launched RXbar Kids, which contain the same core ingredients as RXbars, but in kid-friendly flavors and portions.
"We carefully considered who the right partner would be for RXbar's future. 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," said Peter Rahal, CEO and co-founder of RXbar.