Hormel Foods Corp. (NYSE: HRL) is bulking up.
The Austin-based foods company is set to buy CytoSport Holdings Inc., the maker of Muscle Milk protein products, from private equity firm TSG Consumer Partners for $450 million.
CytoSport, headquartered in Bencia, California, is expected to help Hormel grow its specialty foods segment. Hormel currently makes various food and meat products, including Spam, Jennie-O and Hormel Chili brands. The group bought Skippy peanut butter in January 2013 from Unilever as part of an international expansion plan. The Skippy purchase won Hormel Mergers & Acquisitions Mid-Market Deal of the Year award for 2013. For more on the company's international expansion, see "5 Buyers Find New Customers Abroad."
Bank of America Merrill Lynch advised Hormel throughout the acquisition process.
Several other deals for supplement companies have recently been announced. In June, Capstone invested $57 million in Twinlab Consolidation Corp., which makes nutritional supplements. Also in June, Helen of Troy Ltd. bought Healthy Directions LLC, which provides vitamins, minerals and other supplements.
Christopher Comeau, Stephanie Lapidus and Nicholas Cassidy of Ropes & Gray advised TSG on the deal.