Hormel buying Muscle Milk maker for $450M

|About: Hormel Foods Corporation (HRL)|By:, SA News Editor

Hormel (HRL) is buying CytoSport Holdings, maker of Muscle Milk protein drinks and other high-protein products, for $450M.

With CytoSport expected to have 2014 sales of $370M, Hormel is paying ~1.2x forward sales. The deal is expected to be neutral to FY14 (ends Oct. '14) EPS, and be accretive to FY15 EPS by $0.05.

Hormel: "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 ... The acquisition of CytoSport expands our offerings of portable, immediate, protein-rich foods, and broadens our appeal with younger consumers."