Conyers Park Acquisition Corp., a publicly traded special purpose acquisition company, is merging with Roark Capital Group-owned Atkins Nutritionals to combine under a new holding company, The Simply Good Foods Co.
Simply Good Foods will list on the NASDAQ stock exchange upon closing. The new company will have an anticipated initial enterprise value of approximately US$856m, or 11.6x Atkins’ estimated 2017 pro forma EBITDA of $74m.
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Jim Kilts and Dave West, executive founders of Conyers Park, will serve as chairman and executive vice chairman of the new company. Brian Ratzan, also an executive founder of Conyers Park, will become a director of Simply Good Foods.
“I am excited to help build the Atkins brand and its promise of simply good and nutritious food. Throughout my career, I have worked on numerous brands that both delight and satisfy consumers. We plan to add to our Simply Good Foods portfolio over time with brands that bring simple goodness, happiness and positive experiences to consumers and their families,” Kilts said.
Joseph Scalzo, the CEO of Atkins, will continue in that role and lead the new company. Scalzo said “access to public capital markets” will “allow us to build on Atkins’ brand heritage and consumer loyalty as we focus on growing our brand and introducing it to new consumers”.
“Atkins is an iconic American brand that has pioneered innovative food and snacking products for consumers who are focused on overall health and wellness,” added Scalzo. “Atkins is the original innovator of the low-carb, low-sugar, protein-rich approach to nutrition and healthier weight that has been very compelling to our consumers who want to make smarter and healthier choices. As a result, Atkins has become a destination brand in its aisle, and the company has achieved eight consecutive years of retail sales growth.”
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