Hormel to Acquire Muscle Milk Maker for $450 Million
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Hormel Foods Corp. agreed to buy Muscle Milk maker CytoSport Holdings Inc. for about $450 million to expand beyond Spam canned meat into the kind of protein younger generations crave -- the ready-to-drink bottled version.
CytoSport’s sales in 2014 are expected to be approximately $370 million, Austin, Minnesota-based Hormel said in a statement yesterday. 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.