Cereal giant Kellogg Company has signed an agreement to acquire Chicago Bar Company, the maker of nutrition snack RXBAR, for $600 million.
The company manufactures a line of protein bars made with wholefood ingredients, which Kellogg says that it will continue to develop as an independent brand.
"RXBAR is a unique and innovative company," said Kellogg CEO Steve Cahillane.
"Its values, people and cutting-edge approach represent an exciting opportunity for our business. 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," added Cahillane.
Each bar contains egg whites, fruit and nuts, providing 12 grams of protein with 210-220 calories. The company says that it is suitable as a snack between meals, after workouts, or as a breakfast alternative.
The bar is currently available in 11 different flavours and is distributed throughout the US. Chicago Bar Company has also launched RXBAR Kids, which features kid-friendly flavours and portion sizes.
"The RXBAR team has built an incredible business, with impressive growth and profitability," said Kellogg North America president Paul Norman. "Our focus will be on helping to drive the brand's continued growth."
The deal is expected to be completed by the end of 2017.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Francesca Volpe. Click subscribe to sign up to ESM: The European Supermarket Magazine.