AUSTIN, Minn.--(BUSINESS WIRE)--
Hormel Foods Corporation (NYSE:HRL) today announced the closing of its
acquisition of CytoSport Holdings, Inc., the maker of Muscle Milk®products.
As a leading provider of premium protein products in the sports
nutrition category, 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 also expands its offerings of portable, immediate,
protein-rich foods.
Total 2014 annual sales are expected to be approximately $370 million.
The purchase price is approximately $450 million. Hormel Foods expects
this acquisition to provide about 5 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. CytoSport is based in Benicia, Calif., and was
founded in 1998 by the Pickett family.
Muscle Milk®products are the No. 1 brand in
the ready-to-drink protein beverage category.
About Hormel Foods
Hormel Foods Corporation, based in
Austin, Minn., is a multinational manufacturer and marketer of
consumer-branded food and meat products, many of which are among the
best known and trusted in the food industry. The company leverages its
extensive expertise, innovation and high competencies in pork and turkey
processing and marketing to bring branded, value-added products to the
global marketplace. The company is a member of the Standard & Poor's
(S&P) 500 Index, S&P Dividend Aristocrats for 2013, was named the 2013
Sustainable Supply Chain of the Year by Refrigerated & Frozen Foods
magazine, and was again named one of “The 100 Best Corporate Citizens”
by Corporate Responsibility Magazine for the sixth year in a row. Hormel
Foods was recognized on the G.I. Jobs magazine list of America’s Top 100
Military Friendly Employers in 2012 and 2013, and named one of the 2014
40 Best Companies for Leaders by Chief Executive magazine. The company
enjoys a strong reputation among consumers, retail grocers, foodservice
and industrial customers for products highly regarded for quality,
taste, nutrition, convenience and value. For more information, visit http://www.hormelfoods.com.
Forward-Looking Statements
This news release contains
forward-looking information based on management’s current views and
assumptions. Actual events may differ materially. Factors that may
affect actual results include, but are not limited to: whether and when
the company will be able to realize the expected financial results and
accretive effect of the transaction, and how customers, competitors,
suppliers and employees will react to the transaction. Please refer to
the cautionary comments regarding Forward-Looking Statements and Risk
Factors that appear on pages 32-38 in the company’s Form 10-Q for the
quarter ended April 27, 2014, which can be accessed at http://www.hormelfoods.com
under “Investors-SEC Filings” for other factors that could affect our
business.
Hormel Foods Corporation
Investor Contact:
Jana Haynes,
507-437-5248
jlhaynes@hormel.com
or
Media
Contact:
Julie H. Craven, 507-437-5345
media@hormel.com
Source: Hormel Foods Corporation