US food company Hormel Foods has announced it has agreed to sell its CytoSport sports nutrition business to fellow US consumer goods firm PepsiCo for an undisclosed sum.
Hormel Foods acquired CytoSport, which markets the Muscle Milk and Evolve Protein range of protein powders, shakes and bars, in 2014 for approximately $450 million.
Commenting on the sale, Jim Snee, chairman of the board, president and chief executive officer at Hormel Foods, said: “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. We look forward to working with PepsiCo to ensure a smooth transition for our team members, suppliers, customers and consumers”.
“We look forward to welcoming CytoSport to the PepsiCo family”, a PepsiCo spokesperson added. “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”.
Source: Hormel Foods / Food Business News