DENVER — Snack company Simply Good Foods Co. has entered an agreement to acquire Quest Nutrition LLC for $1 billion.
The pairing of Simply Good Foods, which owns Atkins-branded food products, and Quest unites well-established brands and will result in a nutritional snacking company with combined estimated net sales of more than $800 million, according to the company.
El Segundo, Calif.-based Quest is an active lifestyle brand that focuses on creating snacks that are high in protein and have minimal sugars and net carbohydrates.
“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,” said 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.”
The companies’ collective brands will benefit from cross-selling and marketing opportunities, plus shared best practices and insights in distribution and supply chain management, Scalzo said.
Quest President and CEO Dave Ritterbush will join the Simply Good Foods board of directors.
“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,” Ritterbush said. “As part of Simply Good Foods, Quest will benefit from the combination of two great organizations focused on providing consumers with healthier food choices.”
Denver-based Simply Good Foods is a developer, marketer and seller of nutritional foods and snacking products that sells products under the Atkins, Atkins Endulge and SimplyProtein brand names.
Quest products include Tortilla Style Protein Chips and Quest protein bars.