Hormel Foods is buying Muscle Milk maker CytoSport for approximately $450 million, a move that will diversify its business and tap into younger consumers' demand for sports nutrition products.
Hormel Foods Corp., based in Austin, Minn., makes products such as Spam and Dinty Moore stew.
Benicia, Calif.-based CytoSport makes sports nutrition products such as powders, shakes and bars under the Muscle Milk brand. Founders Greg and Mike Pickett, who are father and son, will still be involved in day-to-day operations. Its 2014 annual sales are expected to be about $370 million.
Private equity firm TSG Consumer Partners is selling its stake in CytoSport. The deal is expected to close within 30 days.