According to speculation, Power Bar is the next to go. Reuters estimates that Power Bar’s revenues are less than $200 million annually (1.7% of Nestle’s nutritional division revenue) and facing intense competition from Clif Bars, Kellogg’s (K) Special K bars, General Mills’ (GIS) LaraBar and others. When you’re in this kind of battle and your parent company wants to focus on bigger brands, you’re as good as sold.
The company I have in mind for Power Bar is Hain Celestial Group (HAIN), whose annual revenues in fiscal 2013 were $1.7 billion. At first glance, it probably doesn’t look like a good fit because Hain already has Health Valley granola and cereal bars in its cupboard of healthy brands. Furthermore, with the exception of the merger between Hain and Celestial in 2000, the company generally does smaller acquisitions — less than $100 million. Power Bar, although its market share is fading, would be a big nut to crack. Nonetheless, I expect Hain to express some interest.