USA – Snacks and beverages company, PepsiCo has agreed to acquire CytoSport business, an American manufacturer of sports-oriented nutritional products from Hormel Foods for an undisclosed amount.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in one to two months.
CytoSport which offers Muscle Milk and a line of protein-enhanced powders, shakes, and bars had “a disappointing year” in 2018, according to James Snee, Chairman, President & Chief Executive Office.
He said CytoSport had a disappointing year with declines in powder and single-serve ready-to-drink product lines.
PepsiCo will look to return to growth of the business given its expertise in sports nutrition category.
“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 Jim Snee, chairman of the board, 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.”
Based in based in Walnut Creek, California, CytoSport started marketing its protein-packed powders to weightlifters before developing ready-to-drink bottled products sold in groceries and other stores.
Hormel Foods, whose brands include Applegate, Columbus Craft Meats, Dinty Moore, Jennie-O and Skippy, acquired CytoSport in 2014 for US$450 million.
The acquisition, the first major under the newly elected CEO, Ramon Laguarta expands PepsiCo’s portfolio away from carbonated soft drinks.
The company expanded its Mountain Dew product portfolio with new MTN DEW AMP, a bold, boundary-pushing style designed for gamers.
The range claims to improve accuracy and alertness, enhanced with a no-slip grip and unique re-sealable lid, enhancing players an enhanced gaming experience.
To expand its nutritional and wellness capabilities, PepsiCo announced agreed to acquire US based nutrition-focused company, Health Warrior and UK maker of natural potato chips, Pipers Crisps, last year.
