Kellogg strikes $600m deal to buy RXBAR

Kellogg has struck a $600m deal to buy Chicago Bar Company LLC, maker of protein bar RXBAR, which it claims is the fastest growing nutrition bar brand in the country.

Under the deal, RXBAR will continue to operate independently as a standalone business, but will be able to leverage Kellogg's scale and resources to boost its growth, said Kellogg CEO Steve Cahillane.

"With its strong millennial consumption and diversified channel presence including e-commerce, RXBAR is perfectly positioned to perform well against future food trends."

With a base of egg whites, fruit and nuts, each RXBAR provides 12g of protein in 210-220 calories and are available in 11 flavors.

“Joining Kellogg is not only a great cultural fit, but it provides us with the tools and resources to accelerate our growth so the brand can scale even faster than it is today," said RXBAR founder and CEO Peter Rahal.

RXBAR's net sales are expected to be around $120m in 2017, said Kellogg in a statement. “We expect the multiple on projected 2018 EBITDA to be in the range of 12-14x, inclusive of the tax benefits to the purchase price.”

Read more about RXBAR's new kids line HERE.