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10/2018

HEALTH WARRIOR acquired by PEPSICO

UNITED STATES Food Processing / Food Products REV 1m USD - 100m USD

Context

PepsiCo snapped up Health Warrior, a U.S. plant-based nutrition company, on Oct. 31, 2018, marking its first investment to dock into The PepsiCo HIVE, a newly created in-house entity focused on growing emerging, smaller brands and overseen by Seth Kaufman, president of PepsiCo North America Nutrition. Founded in 2011 by Dan Gluck, Nick Morris and Shane Emmett, who remains chief executive officer and will continue to lead the business from its Richmond, Va., headquarters, Health Warrior makes nutrition bars with chia and pumpkin seeds, plus plant-based protein offerings such as mug muffins and protein powder, using non-GMO and gluten-free ingredients. Its products are sold at grocery stores nationwide, on Amazon and at healthwarrior.com. Al Carey, chief executive officer of PepsiCo North America, framed the acquisition as a way to increase presence in the nutrition bar category. PepsiCo generated more than $63 billion in net revenue in 2017 and its portfolio includes 22 brands that each generate more than $1 billion in estimated annual retail sales.

HEALTH WARRIOR, which reported an EBITDA margin of in 2018, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the AgriFood sector (11.0x).

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Target

Founded in 2011 by three college friends, Dan Gluck, Nick Morris and Shane Emmett, Health Warrior is a U.S. food brand built around nutrient-dense, plant-based ingredients. The company makes nutrition bars using chia and pumpkin seeds, along with other plant-based protein offerings such as mug muffins and protein powder. Its products are non-GMO, gluten-free and formulated to be lower in sugar than conventional alternatives. The founding team, former college athletes, started eating chia daily after reading about its nutritional profile, and turned that habit into a business aimed at making nutrient-dense foods more accessible to American consumers. Health Warrior sells through grocery stores nationwide, on Amazon and via its own direct-to-consumer site, healthwarrior.com. The brand operates from Richmond, Virginia, where its chief executive continued to lead the business after the 2018 acquisition by PepsiCo. That deal placed Health Warrior within The PepsiCo HIVE, an internal entity created to grow emerging, smaller brands. The company positions itself at the intersection of plant-based nutrition and convenience, targeting health-conscious shoppers seeking lower-sugar, superfood-based snacks.

Ent. Value

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Multiples

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Historical Financials (USD)

Year
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2018
2017

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REFERENCES

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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: health warrior

Acquirer: pepsico