The Simply Good Foods Company, a Colorado-based developer, marketer and seller of branded nutritional foods and snacking products, and California-based Quest Nutrition, LLC, a healthy lifestyle food company, announced that the companies have entered into a definitive agreement under which Simply Good Foods will acquire Quest for $1 billion in cash, or approximately $870 million net of tax benefits, on a cash-free and debt-free basis.

Quest is an active lifestyle brand with a highly engaged consumer base. Its philosophy focuses on creating snacks that contain high protein levels with minimal sugars and net carbohydrates. The pairing of Atkins Nutritionals and Quest unites well-established brands with growth profiles that result in a nutritional snacking company with combined estimated net sales of over $800 million and strong operating margins. This combination positions Simply Good Foods to continue to benefit from consumer mega trends related to healthy eating and better nutrition, as Atkins and Quest products offer consumers an approach to healthier snacking.

“The acquisition of Quest strengthens Simply Good Foods’ position within the nutritional snacking category by expanding our portfolio of brands and product offerings, while also providing us with greater consumer and channel diversification,” said Joseph E. Scalzo, president and CEO of Simply Good Foods. “This combination delivers on our strategy to become a broader nutritional snacking company that offers consumers a broad range of brands and products that satisfy their nutritional needs. We also believe that our collective brands will benefit from increased cross-selling and marketing opportunities, as well as enhanced go-to-market strategies that will drive meaningful net sales and earnings growth. Upon the closing of the transaction we look forward to working with Dave Ritterbush, president and CEO of Quest, and his team, and welcoming Dave to the Simply Good Foods Board of Directors.”

“We are excited to join the Simply Good Foods family and I’m personally pleased to be joining the Simply Good Foods Board of Directors upon closing, as we collectively drive the next stage of Quest’s growth,” said Ritterbush. “The Simply Good Foods team has a strong track record in building leading nutrition brands, and I feel that Quest will fit perfectly in their overall mission. As part of Simply Good Foods, Quest will benefit from the combination of two great organizations focused on providing consumers with healthier food choices."

For more information, visit www.thesimplygoodfoodscompany.com or www.questnutrition.com.