Atkins Nutritionals, an early innovator in healthy food and snacking products, has been acquired by blank check company Conyers Park Acquisition, according to Food Business News.
Conyers Park, which formed last July to enter into mergers or asset acquisitions, will form a new company, Simply Good Foods, when the deal closes. Atkins CEO Joseph Scalzo will retain his role on Simply Good Foods' leadership team, which will be comprised of executives from both companies.
Simply Good Food intends to become a vehicle for mergers and acquisitions in the snacking space as well as the broader food category. “Atkins is an iconic American brand that has pioneered innovative food and snacking products for consumers who are focused on overall health and wellness,” Scalzo said in a statement. “Atkins has become a destination brand in its aisle, and the company has achieved eight consecutive years of retail sales growth."
The Atkins diet, which has been around for decades, has retooled its message to focus on sugar-loving consumers unaware of the "hidden sugars" consumed through carbohydrates. In the early 2000s, many Americans followed the low-carbohydrate Atkins diet to lose extra weight — making "low-carb" a food buzzword.
After a stint through bankruptcy, and changing hands five times since its founder died in 2003, Atkins remains a household name even if its buzz has faded somewhat. A little over six months ago, Atkins looked to capitalize on its name by partnering with Chef'D to launch a line of low carb meal kits. The move was a smart decision, allowing the company to capitalize on its name and grab a piece of a food item popular with time-stressed individuals and families anxious for healthy, home-prepared meals.
Atkins has been looking for a way to go public, at one time seeking a valuation of $1 billion. Dave West, an executive founder of Conyers Park, said Atkins is part of the platform Simply Good Foods will use to acquire other companies. It's safe to say there will always be a market for the type of eating pattern Atkins promotes. The fact that the company has endured while other diet fats have come and gone is proof of that. If the "new" Atkins has access to more capital to debut new products and can tap into new companies that are acquired by Simply Good, it could have a healthy future ahead.