The Simply Good Foods Company To Acquire Only What You Need (OWYN) For $280M In Cash
Portfolio Pulse from Benzinga Newsdesk
The Simply Good Foods Company (NASDAQ:SMPL) announced its acquisition of Only What You Need (OWYN) for $280 million in cash, aiming to expand its portfolio in the fast-growing RTD protein shake market. OWYN, known for its plant-based, allergen-free shakes, is expected to achieve net sales of $120 million in 2024. The acquisition, financed through cash and committed financing from Barclays and Deutsche Bank, is anticipated to close by the end of fiscal year 2024. This strategic move is expected to enhance Simply Good Foods' presence in the nutritional snacking category and provide growth opportunities through increased distribution, household penetration, and product innovation.
April 29, 2024 | 8:23 pm
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Simply Good Foods' acquisition of OWYN for $280M aims to bolster its portfolio in the RTD protein shake segment, with OWYN expected to achieve $120M in net sales in 2024. The deal, financed by cash and loans, is seen as strategically significant for growth and diversification.
The acquisition of OWYN is directly relevant to Simply Good Foods' strategic direction, aiming to enhance its product portfolio and market presence in the nutritional snacking and RTD protein shake segments. The expected net sales of $120M from OWYN in 2024 indicate a significant revenue boost, suggesting a positive short-term impact on SMPL's stock price. The financing strategy, involving cash and committed financing, demonstrates financial planning and support for the acquisition, further underlining its strategic importance. The anticipated completion by the end of fiscal year 2024 and the expected neutral impact on Adjusted Diluted Earnings Per Share, excluding one-time costs, suggest careful integration planning and potential for future growth.
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