PURCHASE, N.Y. — PepsiCo, Inc. has agreed to acquire the CytoSport sports nutrition business from Hormel Foods Corp. Financial terms of the transaction were not disclosed.
Austin, Minn.-based Hormel Foods 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 chief executive officer 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.
“We look forward to welcoming CytoSport to the PepsiCo family," a PepsiCo spokesperson said. "This transaction is yet another example of ways we are building a consumer-centric portfolio of brands that offer a breadth of options across convenient foods and beverages. It is also consistent with our tuck-in acquisition strategy, and we look forward to working with the CytoSport team following closing to continue to strengthen these brands and capture new growth opportunities.”