6x revenue seems like a really high valuation, right? There's a physical product distributed via retail, we aren't talking tech margins. What's the value to Kellogg's?
My only guess is that Nutra Grain bars are being destroyed by Kind and their contemporaries. They need to compete in the category because they get some sort of incremental value when they own a number of different grocery departments. And their internal product development team just isn't very good.
Brand recognition would allow them to push new products using the same brand (which people trust to be "no BS, healthy food"). Brand decoupling could disassociate their "healthy" line of products from the rest of the crud they produce (outside of their bran cereal, most of Kellogg's stuff is laden with sugar and chemicals.)
"Super-/Functional-/Trend Food" is a huge market to play in and Kellogg's needs more and better marketshare.
If you look at the IR-Site, you can see that Kellogg's is already in the process to renovate the Company and also many of their Products... and that "Trend Food" is an important theme for the Company.
6x revenue has been a standard multiple for other exits in the health foods space. Including things like Epic Protein Bars, which was bought by General Mills.
My only guess is that Nutra Grain bars are being destroyed by Kind and their contemporaries. They need to compete in the category because they get some sort of incremental value when they own a number of different grocery departments. And their internal product development team just isn't very good.