Local startup Chicago Bar Company, maker of the RXBAR, one of the most popular nutrition bars on the market, will be acquired by breakfast and snack food conglomerate Kellogg for $600 million, the companies announced today.
According to the deal terms, RXBAR will continue to operate as an independent business. Kellogg, which owns major brands like Special K, Eggo and Cheez-It, is based out of Battle Creek, Mich.
The Chicago Bar Company, founded by Peter Rahal and Jared Smith in 2013, has been a profitable company since its RXBAR has become the fastest growing nutrition bar brand in the U.S. In early September, there were reports that the company was working with Chicago-based investment bank Piper Jaffary & Co. to explore an exit sale.
“RXBAR is a unique and innovative company,” said Kellogg CEO Steve Cahillane in a statement. “Its values, people and cutting-edge approach represent an exciting opportunity for our business. With its strong millennial consumption and diversified channel presence including e-commerce, RXBAR is perfectly positioned to perform well against future food trends.”
The Chicago Bar Company raked in $7 million in earnings in 2016 and is estimated to make more than $120 million in 2017, according to the company. RXBARs are the third best-selling nutrition bar on Amazon and they even have their own Amazon dash button.
Known for their transparent display of ingredients on each bar’s wrapper, RXBARs are made with egg whites, fruits and nuts, providing 12 grams of protein in only 210-220 calories. They come in 11 different flavors are available in several national retailers, including Target, Wal-Mart and Trader Joe’s.
“We carefully considered who the right partner would be for RXBAR’s future,” Rahal said. “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.”