Kellogg Co. (K - Get Report) announced on Friday that it will purchase RXBAR, a niche protein bar company, for $600 million, in conjunction with the company's pivot away from sugary and processed foods which have experienced declining sales.
RXBAR will remain a standalone business and will be able to leverage Kellogg's scale and resources to drive its growth further.
"RXBAR is a unique and innovative company. Its values, people and cutting-edge approach represent an exciting opportunity for our business. Adding a pioneer in clean-label, high-protein snacking to our portfolio bolsters our already strong wholesome snacks offering. RXBAR is an excellent strategic fit for Kellogg as we pivot to growth," said Kellogg CEO Steve Cahillane.
The protein bars, which combine egg whites, fruit and nuts encased in iconic packaging, provide 12 grams of protein in servings of between 210 to 220 calories.
"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 Peter Rahal, CEO and Co-Founder of RXBAR.
Shares of Kellogg were climbing higher during mid-morning trading on Friday.
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