Hormel Foods Corporation, a global branded food company, has entered into a definitive agreement to sell its CytoSport business to PepsiCo. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in 30-60 days.
“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 CEO at Hormel Foods.
“We look forward to working with PepsiCo to ensure a smooth transition for our team members, suppliers, customers and consumers.”
Further details regarding the transaction will be provided during the company’s earnings call on February 21, 2019, at 08:00 CT (09:00 ET).
Based in Benicia, California, CytoSport was founded in 1998 by the Pickett family, and produces Muscle Milk products, ‘the number 1 brand in the ready-to-drink protein beverage category’. The company was acquired by Hormel Foods in 2014.