Atkins Nutritional to go public in deal with blank-check firm (updated)
11/04/2017 13:05
(Adds deal details)
April 11 (Reuters) - Weight-control nutrition company Atkins
Nutritional Holdings has agreed to go public through a merger
with blank-check company Conyers Park Acquisition Corp CPAAU.O
in a deal that will value the combined company at about $856
million.
Atkins, owned by private equity firm Roark Capital
Management LLC, and Conyers will combine under a holding company
called Simply Good Foods Co. urn:newsml:reuters.com:*:nPn9jKSSla
Simply Good Foods will list on the Nasdaq under the symbol
"SMPL" after the deal's expected close in June.
Blank-check companies such as Conyers do not generally have
an established business plan and are used as investment vehicles
to buy other companies. They have become popular as a quick way
to list shares.
Atkins, best known for its eponymous high-protein diet,
makes protein bars, shakes and frozen meals under the
SimplyProtein, Atkins Endulge, Atkins Harvest Trail, and Atkins
Lift brands.
The selling equity owners of Atkins will get $730.1 million,
which includes 10.3 million shares of Simply Good Foods common
stock valued at $10.00 per share.
This transaction will be funded through a combination of
cash, stock, and debt financing.
"With Atkins as the first part of the platform, Simply Good
Foods is poised to become a dynamic vehicle for future long-term
growth and M&A within both the snacking space and broader food
category," Dave West, executive founder of Conyers Park, said in
a statement on Tuesday.
Reuters had reported in 2015 that Atkins was pursuing an
initial public offering after an effort to sell the company did
not meet its price expectations. (http://reut.rs/2ppds1v)
(Reporting by Anya George Tharakan in Bengaluru; Editing by
Maju Samuel)
((anyageorge.tharakan@thomsonreuters.com; within U.S.
+1-646-223-8780; outside U.S. +91 80 6749 7118; Reuters
Messaging: anyageorge.tharakan.thomsonreuters.com@reuters.net))
Keywords: ATKINS M&A/CONYERS PARK