Simply Good plans new debt financing for Quest Nutrition acquisition

By Sara Rosenberg

New York, Aug. 22 – Simply Good Foods Co. has received a commitment for new debt financing to help fund its purchase of Quest Nutrition LLC, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Barclays, Credit Suisse and Goldman Sachs provided the debt commitment.

Under the agreement, Quest Nutrition is being bought for $1 billion in cash, or about $870 million net of tax benefits, on a cash-free and debt-free basis.

Other funds for the transaction will come from about $225 million of cash on the balance sheet.

The company also anticipates issuing equity and, given the expected cash flow generation of the combined businesses, net debt to adjusted EBITDA is expected to be 4x or less by fiscal year-end August 2020.

Closing is expected by year-end, subject to customary conditions and regulatory clearance.

Simply Good is a Denver-based developer, marketer and seller of nutritional foods and snacking products. Quest Nutrition is an El Segundo, Calif.-based healthy lifestyle food company.

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