US food and beverage giant PepsiCo has acquired sports nutrition business CytoSport from local peer Hormel Foods for an undisclosed sum.
Bought by Minnesota-based Hormel in 2014 for US$450m, CytoSport produces protein and wellness products – including bars, shakes and powders – under the Muscle Milk and Evolve brands.
Confirming the deal, Hormel chief executive officer Jim Snee 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.”
PepsiCo will be hoping to turn around the fortunes of its new acquisition. In August, when cutting its annual sales forecast, Hormel pointed to its CytoSport’s declining sales as a factor.
Hormel said the transaction. which is subject to customary closing conditions, including regulatory approvals, is expected to be completed in 30-60 days.