Hormel Completes $465 Million Sale of CytoSport Protein Business to PepsiCo
Global branded food giant Hormel Foods Corp. has completed the $465 million sale of its protein-focused business CytoSport to New York-based PepsiCo Inc.
The sale to PepsiCo is expected to enable more growth for CytoSport—and its flagship offering, the Muscle Milk brand, Jim Snee, chairman of the board, president and CEO of Austin-based Hormel said when the deal was first announced in mid-February.
“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,” Snee said. “We look forward to working with PepsiCo to ensure a smooth transition for our team members, suppliers, customers and consumers.”
In addition to Muscle Milk drinks and protein powders, CytoSport also includes the similar Evolve brand product line.
Hormel Foods purchased CytoSport in 2014 for $450 million, from father and son duo Greg and Michael Pickett, who founded the sports nutrition company in 1998. At the time of the sale, CytoSport’s 2014 annual sales were expected to reach $370 million, according to Fortune.com.
Jeffrey Ettinger, then-CEO of Hormel, said the acquisition would boost public exposure of the growing sports nutrition industry, and that the brand aligned with both Hormel’s focus on protein and its push to diversify its portfolio.
Hormel’s current, wide-ranging portfolio includes self-branded pepperoni, chili, and side dishes, as well as Spam, Jennie-O turkey, Wholly Guacamole, and Fontanini Italian meats.