Kellogg buys protein bar maker for $600M
Kellogg has added another brand to its portfolio of snacks.
Battle Creek-based Kellogg Company said today it entered an agreement to buy Chicago Bar Company, the maker of RXBAR, a line of “clean-label” protein bars.
The acquisition by Kellogg is expected to close by the end of 2017.
The purchase price for Chicago Bar Company is $600 million. RXBAR’s net sales are expected to be about $120 million by the end of this year.
Each RXBAR contains 12 grams of protein and are 210 to 220 calories.
They are made with a base of egg whites, fruit and nuts and are available in 11 flavors.
“RXBAR is an excellent strategic fit for Kellogg as we pivot to growth," said Steve Cahillane, CEO, Kellogg Company. "With its strong millennial consumption and diversified channel presence, including e-commerce, RXBAR is perfectly positioned to perform well against future food trends."
Peter Rahal, CEO and co-founder of RXBAR, said the company “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,” Rahal said.