Hormel Acquires Maker of Muscle Milk Products
Hormel Foods Corp., Austin, Minn., acquired CytoSport Holdings, Inc., the Benicia, Calif., 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 Hormel Foods’ portfolio.
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.
“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,” says Jeffrey Ettinger, chairman of the board, president and CEO of 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.”