Simply Good Foods says OWYN transaction to be neutral to adjusted EPS

The strategic acquisition of OWYN, which is expected to achieve net sales of approximately $120M provides Simply Good Foods with additional scale and is complementary to the Company’s long-term algorithm. In the short term, the Company expects the contribution of OWYN to be below the Company margins as the Company invests in the business and achieves synergies through integration. The transaction is expected to be approximately neutral to Adjusted Diluted Earnings Per Share in the year subsequent to closing, excluding one-time integration expenses and costs to achieve synergies. Under the terms of the agreement, the $280M purchase price will be paid in cash and represents a purchase price multiple of approximately 2.3×3 estimated net sales and 13.3×2 estimated Adjusted EBITDA, including run-rate synergies. Simply Good Foods intends to finance the transaction by using approximately $50M of cash on its balance sheet as well as committed financing from Barclays and Deutsche Bank. Projected trailing twelve-month Net Debt to Adjusted EBITDA leverage is expected to be about 1.5x, or less, at closing.The transaction has been approved with unanimous support by the Board of Directors of Simply Good Foods and by the governin