In the latest U.S. fitness craze, consumers are gobbling up vitamins, minerals and supplements (VMS), and dealmakers are capitalizing on the trend. While it may be tempting to dismiss the product category as a fad, corporations and private equity investors seem to be in it for the long haul. One of the most notable recent transactions is the announcement by Hormel Foods Corp. (NYSE: HRL) to buy CytoSport Holdings Inc., the maker of protein drink Muscle Milk, from TSG Consumer Partners for $450 million.
"Ultimately, it's the consumer that is driving the demand, and consumers are looking for healthier options," says TSG Consumer Partners managing director Brian Krumrei (pictured). "It's a fast growing category, and we expect that to continue."