US-based The Simply Good Foods Company has announced plans to snap up local protein products peer Only What You Need (OWYN).
Simply Good Foods has signed a “definitive agreement” to buy the plant-based shakes and powders group for $280m.
The Denver-headquartered business will be taking over OWYN from majority shareholder United Nutritional Brands, a subsidiary of the investment firm Purchase Capital LLC.
Explaining the rationale behind the deal in a statement, Simply Good Foods said the move would give the company “further diversification” in its portfolio and also help it build its presence in protein shake RTDs.
It added that the OWYN brand “is the fastest growing RTD protein shake brand in the market”, based on multi-outlet dollar sales for the 52 weeks ended March 24.
Located in New York, OWYN manufactures RTD plant-based protein shakes made with blends of pea and pumpkin seed proteins.
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Its products are sold across the US to major retailers such as Sprouts, CVS Pharmacy, Walgreens, Kroger, Whole Foods, and 7-Eleven, among others.
Commenting on the news, Geoff Tanner, president and CEO of Simply Good Foods said he expected the business would bring the company $120m in net sales in 2024.
Tanner added: “OWYN reaches a new, incremental consumer segment which strengthens our category leading presence with retail customers.
“We are confident our go-to-market capabilities will accelerate profitable growth through accelerated distribution gains, increased household penetration and leveraging our cost-efficient supply chain.
“We’ll also look to leverage the knowledge of our collective R&D teams to continue to enhance core product performance and unlock white-space growth opportunities in other forms.”
He added that OWNY’s “strong relationships with blue-chip customers” in “measured and natural channels” would also help Simply Good Foods expand its reach, as well as its “impressive, profitable and growing Ecommerce business.”
Mark Olivieri, current president and CEO of OWYN, is expected to remain in his role at the company under Simply Good Foods’ umbrella.
Just Food has asked Simply Good Foods to confirm how the acquisition might affect OWYN’s other employees.
Simply Good Foods produces a range of protein-based RTD drinks, snacks bars, savoury and sweet snacks under the brands Quest Nutrition and Atkins.
Atkins merged with the Conyers Park Acquisition firm under Simply Good Foods in 2017. Quest Nutrition was snapped up by the holding group for $1bn in 2019.
