WhiteWave, a company based in Colorado, United States acquired the plant based nutrition product provider, Vega for the amount of USD 550 million in cash. With this acquisition, the WhiteWave aims to expand its existing plant based product portfolio to the nutritional powders, bars and related products. This acquisition of the Vega is expected to be accretive at least USD 0.06 to adjusted earnings per share of the company WhiteWave for the year 2016. The company WhiteWave aims a neutral to modest adjusted earnings per share contribution in the year 2015, considering the timing of transaction completion, and excluding certain transaction and other related expenses. Owing to the constant growth momentum of the acquired company along with attractive margin profile makes it a compelling investment opportunity for WhiteWave.
Vega has wide product portfolio in the plant based products such as nutritional shakes and bars provided across Canada and United States. Due to distinctive product portfolio, with ongoing trend of consuming plant based food products, the company is growing and is well positioned in the nutritional product market. In 2015, the company generated annual net sales of USD 100 million representing growth of more than 30% on constant currency basis.
The transaction is likely to complete by Q3 of 2015 subject to regulatory approvals and related customary closing conditions. After the closing the deal, senior management team continues to lead the business from the headquarters established at Vancouver, Canada. The company WhiteWave plans to fund this deal under its existing USD 1 billion revolving credit facility.