Coca-Cola to fully acquire Gatorade rival BodyArmor for $5.6 bln

By Kitco News / November 01, 2021 / www.kitco.com / Article Link

Nov 1 (Reuters) - Coca-Cola Co (KO.N) said on Monday it would buy the remaining stake in BodyArmor it did not already own for $5.6 billion, as the soda maker amps up its sports drink portfolio to take on market leader, PepsiCo Inc's (PEP.O) Gatorade.

The deal, which values BodyArmor at about $6.59 billion, marks a shift in strategy for Coca-Cola that spent the last year offloading or discontinuing brands, including its own energy-drink brand, to focus on its sodas. read more

BodyArmor currently makes about $1.4 billion in annual retail sales and has a 50% growth rate, Coca-Cola said.

The sports drink maker gained much of its popularity due to the backing from basketball great Kobe Bryant, who took a stake in the company in 2013, two years after it was launched.

The world's largest beverage maker, which had first acquired a 15% stake in BodyArmor in 2018, said BodyArmor will be managed as a separate business within its North America operating unit.

At the time Coca-Cola took its initial stake, BodyArmor was valued at $2 billion, according to a Sunday Wall Street Journal report.

Reporting by Uday Sampath and Deborah Sophia in Bengaluru; Editing by Shinjini Ganguli
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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