No. 1 Ready-to-Drink Protein Beverage Brand Expands Specialty Foods
AUSTIN, Minn.--(BUSINESS WIRE)--Jun. 30, 2014--
Hormel Foods Corporation (NYSE: HRL) today announced that it has entered
into a definitive agreement to acquire CytoSport Holdings, Inc.,
maker of Muscle Milk® products. The transaction
is subject to customary closing conditions, including the receipt of
regulatory approvals in the United States, and is expected to close
within 30 days.
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.
Based in Benicia, Calif., CytoSport was founded in 1998 by the Pickett
family, and produces Muscle Milk® products, the
No. 1 brand in the ready-to-drink protein beverage category.
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
“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 chief
executive officer 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.”
BofA Merrill Lynch is serving as exclusive financial advisor to Hormel
Foods in connection with this transaction.
A conference call will be webcast at 8:30
a.m. CT on Tuesday, July 1, 2014. Access is available at http://www.hormelfoods.com.
If you do not have Internet access and want to listen to the call over
the phone, the dial-in number is 888-587-0615 and the conference access
code is 7709925. The audio replay is available by calling 888-203-1112
and entering access code 7709925. The audio replay will be available
beginning at 11:30 a.m. CT on Tuesday, July 1, 2014, through 11:30 a.m.
CT on Tuesday, July 8, 2014. The Webcast replay will be available at
11:30 a.m. CT, Tuesday, July 1, 2014, and archived for one year.
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.
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 required regulatory approvals will be obtained, whether and when the
closing conditions will be satisfied and whether and when the
transaction will close, 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
Source: Hormel Foods Corporation
Hormel Foods Corporation
Julie H. Craven, 507-437-5345