Hormel acquires Muscle MilkPublished 6:45pm Monday, June 30, 2014
Hormel Foods Corp. has acquired CytoSport Holdings Inc., the maker of Muscle Milk products. 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.
As a leading provider of premium protein products in the sports nutrition category, CytoSport’s brands align with the company’s focus on protein while further diversifying the Hormel Foods portfolio.
“Muscle Milk products will serve as a growth catalyst for our Specialty Foods segment, providing this division with a leading brand in the high-growth sports nutrition category,” CEO Jeffrey Ettinger said in a press release. “The acquisition of CytoSport expands our offerings of portable, immediate, protein-rich foods, and broadens our appeal with younger consumers. Muscle Milk premium protein products further enhance our balanced business model.”
Based in Benicia, Calif., CytoSport was founded in 1998 by the Pickett family, and produces Muscle Milk products, the No. 1 brand in the ready-to-drink protein beverage category.
Total 2014 annual sales are expected to be approximately $370 million. The purchase price is approximately $450 million. Hormel Foods expects this acquisition to provide about 5 cents per share accretion in fiscal 2015, with a neutral impact to fiscal 2014 earnings, including transaction costs.