The Simply Good Foods Company has completed its acquisition of Only What You Need (OWYN), a leading plant-based ready-to-drink (RTD) protein shake brand. The acquisition is expected to significantly enhance Simply Good Foods' portfolio and strengthen its position in the rapidly expanding RTD shake market. OWYN is the fastest growing RTD protein shake brand in the market, and the acquisition represents a strategic win for Simply Good Foods.
According to the press release, OWYN is expected to achieve net sales of approximately $120 million in calendar year 2024. This represents exceptional net sales growth in the nutritional snacking category in recent years.
The acquisition was funded by Simply Good Foods through a combination of cash on its balance sheet and incremental borrowings under its outstanding credit facility. The purchase price was $280 million, subject to certain customary post-closing purchase price adjustments.
The company also provided financial updates, stating that Simply Good Foods' base business, excluding OWYN, is tracking to the full fiscal year 2024 outlook provided on April 4, 2024. Additionally, the company is targeting a net debt to adjusted EBITDA ratio of around 1.25x by fiscal year-end August 2024.
The press release also mentioned that Simply Good Foods will update its full fiscal year 2024 outlook, inclusive of the acquisition, when it issues its third-quarter earnings report on June 27, 2024.
Today the company's shares have moved -0.9% to a price of $36.09. Check out the company's full 8-K submission here.
