The Simply Good Foods Company Completes Acquisition of Only What You Need (OWYN)

Core Viewpoint - The Simply Good Foods Company has completed the acquisition of Only What You Need (OWYN), a leading plant-based ready-to-drink protein shake brand, enhancing its portfolio and market presence in the nutritious snacking category [1][2][3] Acquisition Details - The acquisition price for OWYN was $280 million, funded through cash and borrowings from a credit facility [3] - OWYN is projected to achieve net sales of approximately $120 million in the calendar year 2024 [3] Strategic Implications - The acquisition introduces a third complementary brand, allowing Simply Good Foods to tap into a new consumer segment and strengthen its position in the rapidly expanding RTD shake market [2][3] - The company aims to leverage combined R&D expertise to improve product performance and explore new innovation areas [3] Financial Outlook - Simply Good Foods expects to pay down a portion of its total term loan debt of $490 million during fiscal year 2024, targeting a net debt to Adjusted EBITDA ratio of around 1.25x by the end of August 2024 [3] - The base business, excluding OWYN, is tracking to the fiscal year 2024 outlook provided earlier, with updates expected in the third quarter earnings report [4]