Last week it was announced that CytoSport and its long-running Muscle Milk brand of products, were being acquired by PepsiCo. The parent company of CytoSport, Hormel Foods, has since shared its first-quarter results, providing a bit more information on the acquisition.
“We made strong progress with innovation and sales growth in the food, drug and mass channel. However, it became clear to us over time that PepsiCo is the right long-term owner of this business as they have deep expertise in this space.” – Jim Snee, CEO at Hormel Foods.
In Hormel Foods’ first-quarter report it says that the purchase price of CytoSport is $465 million in cash, which is subject to adjustments at closing. The company’s financial report also confirms that total net sales for Cytosport in the 2018 fiscal year were roughly $300 million.
