Muscle Milk sold to Pepsi from Hormel Foods

[Ron]

Announced 02-19-19

Hormel Foods has agreed to sell Muscle Milk producer CytoSport to Pepsi. Hormel said in a statement that it expects to complete the deal in 30 to 60 days. It didn't state the deal price, but will provide more details in its earnings call Thursday.

Hormel bought CytoSport in 2014 for about $450 million, calling the deal a "growth catalyst" for its Specialty Foods unit. At the time, it expected CytoSport to post 2014 sales of about $370 million. The sellers were the Pickett family and TSG Consumer Partners.

On Tuesday, Hormel said "PepsiCo has deep expertise and experience in the sports nutrition category and has been a long-standing distribution partner for CytoSport and the Muscle Milk(R) brand, which puts them in a strong position to grow this dynamic business." CytoSport also includes the Evolve brand of protein bars, powders and shakes.

[Ron]

Price for CytoSport -->

The Austin, Minn.-based food company said Thursday that Pepsico Inc. would pay $465 million for Hormel's CytoSport business, which makes Muscle Milk protein shakes. Hormel had bought the business in 2014 for $450 million.

[joeygym65]

Haven't taken a cytosport product in about 10 years TBH.