WhiteWave Foods Co (WWAV), the Denver-based natural and organic food and beverage giant, is acquiring plant-based protein maker Vega Co. for about $550 million in cash. The deal is expected to close in the third quarter and will be funded under the acquirer’s $1 billion revolving credit facility. Vancouver, B.C.-based Vega, which was formerly known as Sequel Naturals Ltd., is owned by private equity firm VMG Partners and has been on the auction block for the past several months, according to previous reports by The Deal. In fact, a source told The Deal in early May that the process was fairly advanced and to expect an announcement of a deal with a valuation north of $300 million within the next few weeks. The purchase price is 5.5 times Vega’s revenue for the last 12 months of $100 million, more than the three times the revenue multiple many deals in the space have achieved, but less than the nine times revenue for which confectioner Hershey Co. (HSY) bought gourmet meat jerky brand Krave Pure Foods Inc. Vega, whose main products are energy bars and powdered shakes, is but one of several deals to be unveiled by Los Angeles-based VMG in the coming weeks. According to sources, the PE firm has been one of the more active players in the space. It is closing in on investments in two energy bar companies, San Diego-based Perfect Bar Co. and Richmond-based Health Warrior Inc. The two businesses generate around $15 million in revenue.
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