By Josh Beckerman and Jennifer Maloney
Hormel Foods has agreed to sell Muscle Milk producer CytoSport to Pepsi.
Hormel said in a statement that it expects to complete the deal in 30 to 60 days. It didn't state the deal price, but will provide more details in its earnings call Thursday.
Hormel bought CytoSport in 2014 for about $450 million, calling the deal a "growth catalyst" for its Specialty Foods unit. At the time, it expected CytoSport to post 2014 sales of about $370 million. The sellers were the Pickett family and TSG Consumer Partners.
PepsiCo has distributed Muscle Milk since 2009. The company called the deal a tuck-in acquisition, and said Hormel's Muscle Milk and protein bars will become part of PepsiCo's North America beverages unit. "This transaction is yet another example of ways we are building a consumer-centric portfolio of brands that offer a breadth of options across convenient foods and beverages," a PepsiCo spokeswoman said in an email.
In addition to Muscle Milk, the transaction also includes the Cytomax, Monster Milk and Evolve products.
Write to Josh Beckerman at email@example.com