Kellogg Co enters agreement to acquire RXBAR maker Chicago Bar Company

Kellogg Company has entered an agreement to acquire Chicago Bar Company LLC, maker of RXBAR, a line of clean-label protein bars made with delicious, whole food ingredients and the fastest-growing nutrition bar brand in the United States. RXBAR will continue to operate independently as a standalone business, and will be able to leverage Kellogg’s scale and resources to continue driving its growth.

“RXBAR is a unique and innovative company. Its values, people and cutting-edge approach represent an exciting opportunity for our business,” said Steve Cahillane, chief executive officer, Kellogg Company.

“Adding a pioneer in clean-label, high-protein snacking to our portfolio bolsters our already strong wholesome snack offerings,” he added.

With a base of egg whites, fruit and nuts encased in iconic packaging, each RXBAR provides 12g of protein in 210-220 calories. RXBARs don’t compromise on taste, nutrition or convenience, making them great pre- and post-workout snacks, in-between meals, or quick, on-the-go breakfast options.

They are available in eleven different flavours, with additional seasonal and limited-time varieties, and are distributed in the United States. The company recently launched RXBAR Kids, which contain the same core ingredients as RXBARs, but in kid-friendly flavours and portions. 

Financial details
The acquisition by Kellogg is subject to customary closing conditions and is expected to close by the end of 2017. The purchase price is $600 million, or approximately $400 million net of tax benefits.

Growing rapidly, RXBAR’s net sales are expected to be approximately $120 million in 2017.