Kellogg to buy Rxbar for $600 million
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The company is the maker of Rxbar, a line of clean-label protein bars made with delicious, whole food ingredients and the fastest growing nutrition bar brand in the United States.
Rxbar's net sales are expected to be approximately $120 million
The acquisition by Kellogg is subject to customary closing conditions and is expected to close by the end of 2017.
The purchase price is $600 million, or approximately $400 million net of tax benefits.
Growing rapidly, Rxbar's net sales are expected to be approximately $120 million in 2017.
The company expects the multiple on projected 2018 EBITDA to be in the range of 12-14x, inclusive of the tax benefits to the purchase price.
Excluding one-time costs, this acquisition is expected to be immaterial to EPS in 2017 and 2018. ■