GroundForce Capital sells OWYN to Simply Good Foods for $280m

GroundForce Capital, an investment management firm known for its focus on health and sustainability, has successfully sold its stake in Only What You Need (OWYN), a leading provider of plant-based ready-to-drink protein shakes, to The Simply Good Foods Company (Nasdaq: SMPL) for $280 million. This strategic transaction marks a significant step in expanding healthier and more sustainable product offerings in the global market.

Transaction Details and Strategic Fit

The sale includes GroundForce Capital‘s majority interest in OWYN, positioning Simply Good Foods to enhance its footprint in the nutritious snacking sector. OWYN, recognized as the fastest-growing ready-to-drink protein shake brand, aligns well with Simply Good Foods’ portfolio, diversifying its offerings and strengthening its presence within the RTD protein shake segment. The transaction was funded through a combination of cash reserves and incremental borrowings under Simply Good Foods’ existing credit facility.

Growth and Expansion

Since its initial investment in 2019, GroundForce Capital has played a pivotal role in OWYN’s nearly tenfold growth and expansion across multiple channels. This growth has been driven by strategic product innovation, an effective omni-channel strategy, and significant retail expansion, positioning OWYN as a mainstream brand with a highly engaged consumer base.

Executive Insights

Mark Rampolla, Co-Founder and Managing Partner of GroundForce Capital, expressed pride in the partnership with OWyn, noting, “We were honored to support CEO Mark Olivieri and the OWYN team in transforming the original vision into an extraordinary brand and company.” Dan Gluck, another Co-Founder and Managing Partner at GroundForce, emphasized the acquisition’s demonstration of OWYN’s success and the broader industry shift toward healthier, transparent food options.

Future Prospects and Company Vision

Under the new ownership, OWYN is expected to continue its growth trajectory, with an anticipated $120 million in net sales for the calendar year 2024. Simply Good Foods plans to leverage its enhanced distribution networks, increased household penetration, and a more efficient supply chain to foster further growth. Geoff Tanner, President and CEO of Simply Good Foods, highlighted the acquisition’s strategic importance, stating, “The acquisition of OWYN represents a significant strategic win for Simply Good Foods, introducing a complementary brand that strengthens our position in the RTD shake market.”

Advisors and Legal Support

Houlihan Lokey, Inc. served as financial advisor to OWYN, with Greenberg Traurig, LLP acting as legal advisors. These partnerships underscore the strategic and well-structured approach to the transaction.

The acquisition of OWYN by The Simply Good Foods Company is a testament to the dynamic shifts in consumer preferences towards healthier dietary choices and the strategic realignments within the food industry to accommodate these changes. As Simply Good Foods integrates OWYN into its operations, the focus will remain on innovation, market expansion, and maintaining strong performance in the nutritious snacking category.