Hormel Foods to enter sports nutrition category
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|The Muscle Milk line of products is a leading brand in the sports nutrition category.
AUSTIN, Minn. — Hormel Foods Corp. has entered into an agreement to acquire CytoSport Holdings Inc., the manufacturer of Muscle Milk, for approximately $450 million. The Muscle Milk line of products includes ready-to-drink beverages, protein-based powders, sports nutrition bars and energy chews.
“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 Ettinger, chairman of the board, president and CEO 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.”
Other businesses within Hormel Specialty Foods business include Diamond Crystal Brands, Hormel Foods Ingredients, Century Foods International and the company’s private-label efforts. Products manufactured by the business unit include omega-3 fish oils, stocks, broths, pasteurized processed cheeses and imitation blends, milk and whey proteins, dry milk powders and caseinates, meat ingredients, puddings, beverages, sauces, seasoning oils and specialty fats.
CytoSports Holdings is expected to have annual sales of $370 million in 2014. Hormel Foods said it expects the acquisition to add an estimated 5 cents per share of accretion during fiscal 2015 with a neutral impact on fiscal 2014.