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PepsiCo to Acquire CytoSports from Hormel Foods

Initially acquired by Hormel in 2014 for $450 million, CytoSport produces a range of plant-based protein and wellness products including ready-to-drink beverages, protein-based powders, sports nutrition bars and energy chews, under the Muscle Milk and Evolve brands.

Cytosports announces it is now under acquisition from Pepsico. Financial terms of the transaction have not yet been disclosed. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in 30 to 60 days.

PepsiCo already has a strong handle on the sports drinks market, having purchased Gatorade in 2000. Within the United States, Gatorade accounts for approximately 75% of the market share in the sports drink category.

“We look forward to welcoming CytoSport to the PepsiCo family,” a PepsiCo spokesperson said to Food Business News. “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.”

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