Updated: 06/30/2014 7:41 PM
Created: 06/30/2014 6:53 PM KAALtv.com
(ABC 6 NEWS) -- Austin based Hormel Foods has agreed to buy Muscle Milk maker CytoSport Holdings Inc. for $450 million.
The move is the latest by the meat processor to expand into other retail food businesses. Last year, Hormel purchased the Skippy peanut butter brand for $700 million.
2013 was a record year for Hormel. Profits reached an all-time high of more than $526 million, and sales were up six percent from 2012 to $8.75 billion.
CytoSport's 2014 sales are expected to be about $370 million.
“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.”
Hormel is holding a press conference Tuesday.