US - US food and meat processing giant Hormel Foods is to acquire CytoSport Holdings, maker of Muscle Milk products.
The $450 million deal is subject to the usual 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 are uin line with the Hormel’s focus on protein while further diversifying the company’s portfolio.
Based in Benicia, California, 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.
Hormel expects the acquisition to provide about 5 cents per share accretion in the 2015 financial year, with a neutral impact to 2014 earnings, including transaction costs.
“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,” said Jeffrey M. Ettinger, (pictured) chairman of the board, president and chief executive officer at Hormel Foods.
“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.”
TheMeatSite News Desk