CytoSport Sells Company

CytoSport has sold their company! CytoSport (makers of Muscle Milk) announced today that they have sold their company to Hormel Foods Corporation which is an 8.7 BILLION dollar company! The sale enhances the resources for CytoSport to further develop on a multinational scale. According to the Wall Street Journal, Hormel Foods bought Cytosport for almost $450 million dollars. They also report that Cytosport is on course to do roughly $370 million in sales this year. 

CytoSport was founded in 1998 by father-son duo Greg and Mike Pickett, and has remained a family-operated business from its inception. The company produces a complete line of sports nutrition products.  The Pickett family will remain committed to the company's growth and will continue to be involved in day-to-day operations.

"We are excited for the future of the company and are fully confident that aligning our team's knowledge and experience in the sports nutrition world with the incredibly robust global strategies of Hormel Foods, will help the company establish an even stronger portfolio of brands and products," said CytoSport Chairman and Founder Greg Pickett.  "Over the last 15 years we've developed one of the strongest brands in the industry and built an entirely new protein beverage category with Muscle Milk.  This next step in the company's growth story will enable CytoSport to continue its leadership role in the industry and be a part of a global company with greater resources.  My family is extremely proud of where the company sits today and grateful to the passionate people who have been a part of this extraordinary adventure." 

TSG Consumer Partners

It turns out that 7 years ago, a company called TSG Consumer Partners became CytoSport's strategic equity partner but they are now selling their stake in the company. "We are fortunate to have partnered with the Pickett family and the management team to help drive the company's success over the last seven years," said Brian Krumrei, Managing Director at TSG Consumer Partners. "During this period, Muscle Milk has established a leading position in the protein beverage category and sales have more than quadrupled. This transaction represents an exceptional outcome for CytoSport, TSG Consumer Partners and Hormel Foods. We look forward to watching the company's continued success under new ownership."

"We view this new opportunity as a tremendous way to expand the CytoSport brand presence on the global scale and align with a company that shares our commitment to employees and consumers," said CytoSport Co-Founder Mike Pickett.  "With the support from a multinational company like Hormel Foods, the entire CytoSport team is confident in the direction of the brands and look forward to continuing to share the brands' experiences with consumers around the country and the world."  

CytoSport® was founded in 1998 by father and son duo Greg and Mike Pickett, and operates its NSF International GMP for Sport™ registered facility at its headquarters in Benicia, Calif. 

Hormel Foods Corporation is a multinational manufacturer and marketer of consumer-branded food and meat products with high competencies in pork and turkey processing. On January 31, 2013, the Company acquired SKIPPY peanut butter.

TSG Consumer Partners is a leading investment firm with over $2.9 billion in equity capital under management, focused exclusively on the branded consumer sector. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, household and apparel & accessories sectors. Representative past and present partner companies include vitamin water, Smart Balance, popchips, Yard House, Smashbox Cosmetics, Pureology, e.l.f. cosmetics, Planet Fitness and Revolve.

Source: PR NEWSWIRE