SAN FRANCISCO, June 30, 2014 -- TSG Consumer Partners announced today it is selling its stake in CytoSport®, the makers of Muscle Milk®, to Hormel Foods Corporation (NYSE: HRL), creating one of the foremost protein and sports nutrition brand platforms with extensive domestic and international reach. 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.
“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.”
“We are fortunate to have partnered with the Pickett family and the management team to help drive the company’s success over the last 7 years, said Brian Krumrei, Managing Director at TSG. “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 and Hormel, and we look forward to watching the company’s continued success under new ownership.”
CytoSport®, Inc. is one of the largest sports nutrition companies in the United States and provides high quality nutritional products to help athletes and active lifestyle individuals achieve their peak performance potential. The company 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. The CytoSport team is dedicated to working with sports scientists, coaches and trainers to redefine protein-enhanced products to promote workout recovery, lean muscle growth and sustained energy. CytoSport helps in building athletes from the inside out™ with a complete line of powders, shakes and bars, including the Muscle Milk® brand, an award-winning protein line used by professional athletes, collegiate athletic departments and fitness enthusiasts everywhere. CytoSport was named 2009 Small Company of the Year at the annual Beverage Forum presented by Beverage Magazine and Beverage Marketing Corporation and was named one of CircleUp25’s 2013 most innovative companies according to Forbes. In 2014, Fast Company listed CytoSport as one of the world’s top 10 most innovative companies in fitness.
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.
About TSG Consumer Partners LLC
TSG Consumer Partners LLC 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 vitaminwater, Smart Balance, popchips, Yard House, Smashbox Cosmetics, Pureology, e.l.f. cosmetics, Planet Fitness and Revolve. For more information visit www.tsgconsumer.com.
ABOUT TSG CONSUMER PARTNERS LLC
TSG Consumer Partners, LLC is a leading investment firm with
approximately $5 billion of assets 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,
and e-commerce sectors. Representative past and present partner
companies include Duckhorn Wine Company, vitaminwater, thinkThin,
popchips, Muscle Milk, Yard House, Stumptown, Pabst, Planet Fitness,
REVOLVE, PAIGE, Smashbox Cosmetics, Pureology, Sexy Hair, e.l.f. Cosmetics
and IT Cosmetics.
Meghan Gavigan / Dan Goldstein
Sard Verbinnen & Co
Meghan Gavigan - 212.687.8080
Dan Goldstein - 310.201.2040