After less than five months on the job, PepsiCo's new CEO, Ramon Laguarta, just made his first big move, scooping up protein product maker Muscle Milk from Hormel Foods Corp. for an undisclosed amount.
Hormel, which is known for brands such as Justin's peanut butter and Spam, announced on Tuesday the sale of its CytoSport unit. In addition to Muscle Milk, CytoSport makes Evolve Protein products and is dubbed a sports and wellness company.
The deal is expected to close in 30 to 60 days and Hormel added that more details about the deal will be released on Thursday during its earnings call.
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Hormel CEO Jim Snee said that PepsiCo is in "a strong position to grow" the business.
In a statement to FOX Business, a Pepsi spokesperson said the transaction "is yet another example of ways we are building a consumer-centric portfolio of brands that offer a breadth of options across covenient foods & beverages."
It also said the merger is consistent with the company's "tuck-in acquisition strategy."
In recent years, Pepsi has been betting big on snacks, while its biggest rival Coca-Cola is extremely bullish on beverages, including coffee recently.
Last year, Pepsi acquired Bare Foods, a dried fruit and vegetable snack company. It also is home to big snack brands such as Frito-Lay and Quaker.