Hormel Foods Corp. (NYSE:HRL) announced the closing of its acquisition of CytoSport Holdings Inc., the maker of Muscle Milk® products.
As a leading provider of premium protein products in the sports nutrition category, CytoSport’s brands align with the company’s focus on protein, while further diversifying the Hormel Foods portfolio. The acquisition will serve as a growth catalyst for the company’s Specialty Foods segment, and also expands its offerings of portable, immediate, protein-rich foods.
Total 2014 annual sales are expected to be approximately $370 million. The purchase price is approximately $450 million. Hormel Foods expects this acquisition to provide about 5 cents per share accretion in fiscal 2015, with a neutral impact to fiscal 2014 earnings, including transaction costs.
Hormel Foods purchased CytoSport from the Pickett family and TSG Consumer Partners. CytoSport is based in Benicia, Calif., and was founded in 1998 by the Pickett family.
Muscle Milk products are the number-one brand in the ready-to-drink protein beverage category.