Simply Good Foods Co. is acquiring active lifestyle brand Quest in a $1 billion deal that creates a nutritional snacking market behemoth.
Quest is focussed on creating snacks that contain high protein levels, minimal sugars and net carbohydrates.
The deal provides Simply Good Foods greater penetration in the better-for-you snacking category by combining Quest with its Atkins brand.
The acquisition will result in a company with combined estimated net sales over $800 million.
“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 E. 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.”