US-based cookie and cracker manufacturer Kellogg Company has agreed to acquire Chicago Bar Company, the maker of protein bar brand Rxbar for $600m.
The addition of Rxbar, made from whole food ingredients, is expected to strengthen the wholesome snacks business of Kellogg.
According to Kellogg, each Rxbar is made up of a base of egg whites, fruit and nuts to pack 12g of protein in 210-220 calories.
The nutrition bar can be found in 11 different flavors across the US along with additional seasonal and limited-time varieties introduced by its maker.
Recently, Chicago Bar Company had rolled out Rxbar Kids which comes in kid-friendly flavors and portions although it retains the same core ingredients as Rxbars.
Kellogg Company CEO Steve Cahillane said: “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.”
Kellogg expects the net sales of Rxbar to be around $120m in the current year.
Post acquisition, Rxbar will be operated as a standalone business. It is expected to leverage the scale and resources of its new owner to continue with its growth.
RXBAR CEO and Co-Founder Peter Rahal said: “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.”
Based on meeting of customary closing conditions, the acquisition is anticipated to be closed by the year end.
