AUSTIN, TEXAS — Amplify Snack Brands, Inc. has acquired Austin-based Boundless Nutrition, a better-for-you snack food company whose products include Oatmega bars and Perfect Cookie products. Financial terms of the transaction were not disclosed.
Founded in 2006 by Trevor Ross, Boundless Nutrition generated net sales of approximately $7 million in the 12 months ended March 31, up 100% from the same period a year earlier.
|Tom Ennis, president and c.e.o. of Amplify|
“We are excited to enhance our existing brand portfolio with the addition of the Boundless Nutrition portfolio,” said Tom Ennis, president and chief executive officer of Amplify. “We have been attracted to the size and growth rates of the snack bar category for some time, and the Boundless Nutrition brands have shown very strong momentum as consumers are increasingly looking for great tasting, convenient, on-the-go protein snack options. Boundless Nutrition’s brands are in the early stages of their growth cycle, which is being driven by the products’ delicious flavor profile, distinct brand positioning, high-quality ingredients and blue-chip channel partners. We believe Amplify has the capabilities to leverage our existing infrastructure and expertise in better-for-you snacking to drive significant growth and earnings, as we have done with SkinnyPop and more recently Paqui.”
In addition to the acquisition, Amplify announced financial results for the first quarter of fiscal 2016. Net income in the period ended March 31 was $8,402,000, equal to 11c per share on the common stock, up 71% from $4,904, 000, or 7c per share, in the same period a year ago.
Net sales increased 23% to $54,345,000 from $44,275,000, driven by increased distribution and continued strong brand velocity across sales channels for the SkinnyPop brand, as well as new distribution of the Paqui brand.
“We started 2016 with continued and excellent momentum,” Mr. Ennis said. “Our performance was driven by distribution gains and strong velocity of the SkinnyPop brand across sales channels and we are off to a great start with our national launch of the Paqui brand. As we have historically done during our first fiscal quarter, we made significant and planned trade promotion investments to support both the SkinnyPop and Paqui brands, resulting in robust productivity during the period while also driving increased trial and brand awareness in both new and existing distribution channels. Based on these positive financial results and the momentum of the existing business, we are raising our financial outlook for the year.”Excluding the benefit of the Boundless Nutrition acquisition, for the full year 2016 the company said it expects net sales of $233 million to $237 million, up 26.7% to 28.9% from 2015; adjusted EBITDA of $88 million to $91 million, an increase of 17.5% to 21.5%, compared with 2015; and adjusted e.p.s. of 61c to 64c, an increase of 19.6% to 25.5%, compared with 2015.