In a statement, Hormel Foods said that CytoSport’s brands align with the company’s focus on protein, while further diversifying the Hormel Foods portfolio.
The acquisition will serve as a growth catalyst for the company’s specialty foods segment, and expand its offerings of portable, immediate, protein-rich foods.
Total 2014 annual sales are expected to be approximately $370m. The purchase price is approximately $450m.
Hormel Foods expects this acquisition to provide about five cents per share accretion in fiscal 2015, with a neutral impact to fiscal 2014 earnings, including transaction costs.
Hormel Foods purchased CytoSport from the Pickett family and TSG Consumer Partners.
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