Hormel Foods Corp. has entered into a definitive agreement to sell its CytoSport business, which includes Muscle Milk, to PepsiCo, Inc., the parent of Gatorade. Other current Pepsi brands that play in the sports/nutrition space include Aquafina, Propel, O.N.E., AMP Energy, Organic, IZZE, Tropicana and Naked.
“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 chief executive officer at Hormel Foods.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in 30-60 days.
