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Bobo's Oat Bars preps to go to market

an illustration of a granola bar with a 100 dollar bill on its wrapper

Illustration: Tiffany Herring/Axios

Bobo's, the Loveland, Colo.-based company known for its oat bars, is still preparing for a sale, potentially later this year, CEO T.J. McIntyre tells Axios exclusively.

Why it matters: It is a widely watched middle market transaction in the making that even the bulge bracket investment banks are courting.

The latest: Bobo's is talking to several investment banks as well as strategic and financial buyers, McIntyre says, but has yet to hire an adviser.

By the numbers: Last year Bobo's had about $90 million in revenue, a figure that will likely grow to between $110 million and $115 million.

  • Bobo's wants to boost its EBITDA margin (it's currently in the single digits) to 10% or greater for a sale, which the company can achieve by later this year, he adds.

Zoom in: In the interim, Bobo's has been transitioning to a new 125,000-square-foot manufacturing facility, though the transition has taken a bit longer and had a few more hiccups than expected, McIntyre says.

  • The plant is now producing 3 million pieces per week and will soon be up to 4 million, he says.

The big picture: Snacking is an attractive investment because it is growing and recession-resistant.

The bottom line: "Real food wins, and we're going to transact," McIntyre says.

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