U.S. News

RXBar CEO after $600 million buyout: 'I have financial freedom'

Key Points
  • Kellogg is buying protein-bar company RXBar for $600 million.
  • "It was kind of a no-brainer," says RXBar CEO Peter Rahal.
  • Rahal says he'll remain at the helm of his company, though the deal gives him personal "financial freedom."
Kellogg pays $600 million for RXBAR

Less than five years after starting a protein bar company from the ground up, 31-year-old CEO Peter Rahal's efforts growing RXBar are being rewarded to the tune of more than half a billion dollars.

RXBar, maker of "whole food" protein bars, is being bought by Kellogg in a $600 million deal to be completed by the end of the year, Kellogg said on Friday.

Asked how much he personally made from the deal, Rahal steered clear of specifics.

"I have financial freedom. I'll just say that," Rahal said Wednesday on CNBC's "Power Lunch."

The protein bar company has earned distinction for its "clean-label" bars, prominently advertising the few main ingredients on each bar's packaging. For most of the 11 available flavors, these base ingredients include egg whites, almonds, dates and cashews.

Kellogg has high hopes for its new acquisition. In its Friday press release, the Michigan-based cereal giant expected RXBar's net sales to reach about $120 million by the end of 2017.

"Our focus will be on helping to drive the brand's continued growth," said Paul Norman, Kellogg North America president, in the statement.

Rahal said aligning with Kellogg was "kind of a no-brainer" in terms of values and opportunities. "Kellogg will provide us with a ton of muscle" for growth, as well as research and development funding that will "continue to improve the product," he said.

Rahal also said he plans to stay in his role despite his newfound wealth. "I get to keep my job, and the whole company will remain intact. We'll be a standalone company within Kellogg, so we're excited to continue to grow and [move on to] the next chapter."