Hormel bulks up portfolio with purchase of Muscle Milk line


Late Monday night, Austin, Minnesota-based Hormel Foods announced plans to pay $450 million for CytoSport Holdings, the maker of Muscle Milk.

The Star Tribune reports that the deal is expected to close within 30 days. Hormel company executives will discuss the deal in a Tuesday conference call with analysts and investors.

Based in Benicia, California, CytoSport is currently owned by the family that founded it and private equity firm TSG Consumer Partners LLC. The father-and-son team of Greg and Michael Pickett started the company in 1998. The company began producing protein powder for athletes in 2000, but has expanded with the addition of ready-to-drink beverages and bars. Muscle Milk is No. 1 in the ready-to-drink protein beverage category.

“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,” Hormel CEO Jeffrey Ettinger said in a statement. “The acquisition of CytoSport expands our offerings of portable, immediate, protein-rich foods, and broadens our appeal with younger consumers.”

The Wall Street Journal said the addition of the CytoSport product line gives Hormel "...a broader profile in the burgeoning market for high-protein supplements. Consumers have embraced these products as fitness and weight-loss aids."

The Journal added that sales of packaged foods with protein-related claims on their labels rose to $7.5 billion in the year that ended on Feb. 15. Research firm Nielsen said that's an increase of more than 50% from the same period four years earlier.

Bloomberg reported that Hormel forecast the acquisition to add about 5 cents a share to earnings in fiscal 2015, with a neutral impact to earnings in the current fiscal year, including transaction costs.

Hormel has continued to diversify beyond the meat-based products that built its reputation; it acquired Skippy from Unilever in 2013, paying $700 million for the No. 2-selling peanut butter line.

Next Up

Gary Kubiak

Vikings offensive coordinator Gary Kubiak announces retirement

Kubiak wraps up a career that has spanned nearly four decades.


Minneapolis police seeks public help finding missing woman

A 63-year-old woman has been missing since Tuesday

coronavirus testing

Don't want to talk to a contact tracer? MN debuts online option after positive test

The department says the survey will allow its staff to keep track of more cases at a faster pace

Family Dollar

Money Gal Coaching: 12 things you are wasting your money on

Kelly Blodgett started Money Gal Coaching after paying down nearly $50K in debt in 18 months.

police lights

Three teens charged in Minneapolis robberies

The incidents took place on Saturday in Minneapolis.

covid-19, coronavirus, ppe

Here is Minnesota's COVID-19 update for Thursday, January 21

It's the first time in exactly four months that Minnesota has had fewer than 100 COVID patients in intensive care.

icy roads, bad roads

Girl, 16, killed in crash with semi on icy Minnesota road

The crash happened in Dodge County around 8 a.m. Wednesday.

police lights

Road rage incident sees driver punch out man's window, punch him in face

The incident happened in Waite Park Wednesday morning.

Screen Shot 2019-10-11 at 7.01.24 AM

Minneapolis will recover $100K in costs connected to 2019 Trump rally

The Target Center operator said it'll pay the costs over three years.

Jacob Frey

Minneapolis Mayor Jacob Frey confirms run for reelection

He has faced criticism over the city's response to George Floyd's death.