WhiteWave Foods To Acquire Vega For About $550 Mln In Cash - Quick Facts

(RTTNews) - WhiteWave Foods Co. (WWAV) announced that it has agreed to acquire Vega, a pioneer and leader in plant-based nutrition products, for approximately US$550 million in cash.

Vega offers a broad range of market-leading plant-based nutrition products - primarily powdered shakes and snack bars - containing nutrient-dense, superfood ingredients. Based in Vancouver, British Columbia, Vega was founded in 2004 by President Charles Chang, and is currently majority owned by Mr. Chang and VMG Partners.

Vega generated net sales of approximately US$100 million over the last twelve months, representing growth of over 30% on a constant currency basis, and grew at a faster rate on a year-to-date basis in 2015.

The transaction is expected to be at least $0.06 accretive to WhiteWave's adjusted earnings per share in 2016, excluding certain transaction and other related expenses, and at least $0.09 accretive to adjusted cash earnings per share, when also excluding acquisition-related intangible amortization.

In 2015, WhiteWave expects a neutral to modest adjusted earnings per share contribution, depending on timing of transaction completion, after excluding certain transaction and other related expenses.

The transaction is expected to close in the third quarter of 2015, subject to regulatory approvals and other customary closing conditions. Following the close of the transaction, Vega will remain headquartered in Vancouver and its senior management team will continue to lead the business.

WhiteWave noted that it intends to fund the acquisition under its existing $1 billion revolving credit facility.