Hormel Foods Corporation has announced the closing of its acquisition of CytoSport Holdings, Inc., the maker of ready-to-drink protein beverage products Muscle Milk.
Hormel Foods say 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 US$370 million.
The purchase price is approximately US$450 million.
The company expects this acquisition to provide about US$0.05 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, California, US and was founded in 1998 by the Pickett family.
