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Takeaway: Today, WWAV announced that it has agreed to acquire Vega for $550 million.

VEGA deal summary and WWAV Black Book date announcement

On Thursday June 18, 2015 at 3:00PM we will be releasing a Black Book video presentation on WWAV.  The VEGA acquisition is a great fit for the company and is an example of why WWAV is a long-term winner in the organic category!

Today, WWAV announced that it has agreed to acquire Vega for $550 million. Strategically, this is a natural fit for WWAV’s portfolio that strengthens their plant-based foods & beverages portfolio. Vega is the leader in plant-based nutrition products, further bolstering WWAV’s stable of #1 brands.

This marks WWAV’s third acquisition since spinning off from Dean Foods, starting with Earthbound in 2013, So Delicious in 2014 and now Vega. There is an obvious acquisition trend of diary-free and plant-based, better-for-you companies. These are very on-trend categories that are rapidly growing, making them very attractive pockets of growth for large CPG companies.

From looking at the sales multiple of 5.5x, it appears that WWAV may have had to beat out some competition for this asset. We believe that this is money well spent, Vega has been growing at a 30% clip and we believe this can accelerate further as they leverage WWAV’s supply chain in the U.S. and U.K. This is the right home for Vega, the partnership between the Vega and WWAV teams will allow for learning and best practices between both sides.

Below is a one page summary of the deal:

WWAV: VEGA IS A NATURAL FIT - WWAV to acquire Vega 

Longer term there are many way you can win with WWAV:

  1. Growth of the base business ― distribution growth & category expansions
  2. Growth through acquisitions ― string of pearls approach
  3. Sell the company ― many large CPG companies are looking for growth