Conyers Park and Atkins Nutritionals combine businesses to form Simply Good Foods
US-based firm Conyers Park has combined its business with an affiliate of Atkins Nutritionals to form a new holding company called Simply Good Foods.
The new company will have an anticipated initial enterprise value of approximately $856m.
Being funded through a combination of cash, stock, and debt financing, the deal was unanimously approved by Conyers Park’s board of directors.
As part of the transaction, Atkins' selling equity owners will receive $730.12m in total consideration, inclusive of 10.25 million shares of common stock of Simply Good Foods valued at $10 each.
Last month, Conyers Park secured a $200m credit agreement supporting its planned buyout of Atkins.
Conyers Park executive founder Jim Kilts said: “The company is well-positioned given its loyal Atkins brand consumer base, strong leadership, dedicated team members, and relevance with key retailers.
“We are eager to work with the management team and the new Simply Good Foods Board members applying our consumer products expertise to assist in its future business progression.”
The stock ownership of Simply Good Foods will be shared by Conyers Park’s previous public shareholders and the previous equity owners of Atkins, including affiliates of Roark Capital Group.
Conyers Park founders and the common stock private placement investors will each hold a 14% stake in the newly formed company.
Kilts will serve as Simply Good Foods chairman, while Conyers Park executive founder Dave West will serve as executive vice-chairman. Atkins CEO Joseph Scalzo will continue in this role in the new company.