Hormel Foods to acquire CytoSport for $450 million
Deal includes Muscle Milk brand, manufacturing facility, and production and distribution agreements
Hormel Foods Corp., Austin, Minn., has entered into a definitive agreement to acquire CytoSport Holdings Inc., Benicia, Calif., for approximately $450 million. The deal includes the Muscle Milk brand of shelf-stable, ready-to-drink protein beverages; a manufacturing facility in Benicia, Calif.; as well as several manufacturing and distribution agreements both domestically and abroad, according to Hormel Foods. Total 2014 annual sales for the Muscle Milk brand are expected to be approximately $370 million, it says.
This new partnership will create one of the foremost protein and sports nutrition brand platforms and give the company extensive domestic and international reach, CytoSport says. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the United States, and is expected to close within 30 days.