The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US, and is expected to close within 30 days.
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.
“Muscle Milk products will serve as a growth catalyst for our Specialty Foods segment, providing this division with a leading brand in the high-growth sports nutrition category,” said Jeffrey M Ettinger, chairman of the board, president and CEO at Hormel Foods. “The acquisition of CytoSport expands our offerings of portable, immediate, protein-rich foods, and broadens our appeal with younger consumers. Muscle Milk premium protein products further enhance our balanced business model.”
© FoodBev Media Ltd 2024