Coca-Cola has taken over the $ 5.6 billion bodybuilding drink maker Bodyarmor, the company’s largest acquisition ever, Reuters reports.
In 2018, the beverage giant bought a 15% stake in Bodyarmor, becoming the second largest shareholder of this company. At the time, basketball player Kobe Bryant was the third largest shareholder in Bodyarmor, after an investment made in 2013, two years after its establishment.
The entity that owns the fortune of the late NBA star will receive about $ 400 million from this sale, according to the Wall Street Journal.
The agreement to take over the remaining 85% of Bodyarmor’s shares is not entirely unexpected.
Coca-Cola first announced in February that it intends to buy a controlling stake in Bodyarmor this year, in a document submitted to the Federal Trade Commission.
Owning Bodyarmor helps Coca-Cola gain market share in the sports drinks category, although PepsiCo’s Gatorade is by far the market leader with a market share of around 70%.
Presenting itself as a healthier sports drink, Bodyarmor overtook Coca-Cola Powerade to become the second largest player in the category.
According to Coca Cola, retail sales of the sports beverage brand are expected to exceed $ 1.4 billion this year, up about 50 percent this year.
As part of the agreement, Bodyarmor co-founder Mike Repole will collaborate on the company’s non-carbonated beverage portfolio.
Repole also founded Vitaminwater, Smartwater and Energy Brands, all of which are now owned by Coca Cola.
Repole and BodyArmor president Brent Hastie will also remain to assist Bodyarmor in trying to overcome Gatorade.
Coca-Cola shares rose 2% this year, giving it a market value of $ 242 billion. (News.ro)
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