The WhiteWave Foods Company has agreed to acquire Vega, a plant-based nutrition products company, for approximately $550 million in cash.
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Vega offers a broad range of plant-based nutrition products – primarily powdered shakes and snack bars – containing nutrient-dense, superfood ingredients.
Vega’s products are all plant-based and provide a good source of protein, Omega 3s, fiber, vitamins, probiotics and antioxidants. Vega holds a strong market position in the plant-based nutrition category across Canada and the U.S., with a top-tier retail customer base and loyal consumer following ranging from general wellness-seekers to athletes.
Based in Vancouver, British Columbia, Vega was founded in 2004 by President Charles Chang, and is currently majority owned by Mr. Chang and VMG Partners.
With its distinctive product offering and opportunities to extend its line, Vega is in the early stages of its growth cycle.
It is also well positioned to capitalize on the favorable plant-based eating trends and upside potential that exist in the fast-growing $8.6 billion nutritional powders, bars and ready-to-drink beverages market, where consumers are increasingly seeking healthy solutions from plant-based offerings. Moreover, this acquisition represents an opportunity for WhiteWave to extend its plant-based foods and beverages platform into nutritional powders and bars, with additional innovation opportunities.
Vega generated net sales of approximately $100 million over the last twelve months, representing growth of over 30% on a constant currency basis, and grew at a faster rate on a year-to-date basis in 2015.
The transaction is expected to be at least $0.06 accretive to WhiteWave’s adjusted earnings per share in 2016, excluding certain transaction and other related expenses, and at least $0.09 accretive to adjusted cash earnings per share, when also excluding acquisition-related intangible amortization.
In 2015, WhiteWave expects a neutral to modest adjusted earnings per share contribution, depending on timing of transaction completion, after excluding certain transaction and other related expenses. Vega’s growth momentum, coupled with its attractive margin profile and related financial benefits, make this a compelling investment opportunity for WhiteWave. ■