PURCHASE, N.Y. – PepsiCo Inc. has agreed to acquire the CytoSport sports nutrition business from Austin, Minnesota-based Hormel Foods Corp. Financial terms of the transaction were not disclosed.
Hormel acquired CytoSport Holdings Inc., the manufacturer of Muscle Milk, for approximately $450 million in 2014. Muscle Milk products include ready-to-drink beverages, protein-based powders, sports nutrition bars and energy chews.
In 2017, CytoSport debuted a second brand, Evolve, a plant-based and vegan protein line featuring shelf-stable protein shakes, powders and bars made with pea protein.
PepsiCo is the maker of Gatorade.
“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 brand, which puts them in a strong position to grow this dynamic business,” said James P. Snee, chairman, president and CEO at Hormel Foods. “We look forward to working with PepsiCo to ensure a smooth transition for our team members, suppliers, customers and consumers.”
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in 30 to 60 days.