Kellogg’s is buying the upstart company behind protein bar maker RXBar for US $600 million.
RXBAR, which is owned by Chicago Bar Co, will continue to operate independently after the deal, Kellogg’s said in a statement.
“RXBAR is a unique and innovative company,” Kellogg’s new CEO Steve Cahillane said in prepared remarks released Friday. “Adding a pioneer in clean-label, high-protein snacking to our portfolio bolsters our already strong wholesome snacks offering.”
Kellogg’s said it will pay about US $400 million net of tax benefits for the company and RXBAR’s net sales are expected to be about US $120 million in 2017.
The deal is expected to be completed by the end of the year.
RXBar says its bars are made with egg whites, fruits and nuts, and exclude dairy, soy or gluten.