• Nestle USA sells Juicy Juice business
Nestle USA announced the sale of its Juicy Juice business to private equity firm Brynwood Partners. Terms of the agreement were not disclosed.
Juicy Juice is a maker of reduced-sugar beverages for children and its two primary products include the Juicy Juice brand and Fruitfuls.
“We look forward to bringing renewed focus and attention to this great brand that has, and continues to hold, a special place with families over many generations,” said Henk Hartong III, senior managing partner of Brynwood Partners. “By further leveraging the brand’s nutritional and wellness attributes, we plan to continue providing our loyal customers with its high quality, great tasting products in innovative packaging formats.”
Brynwood Partners said it will announce Juicy Juice’s management team in the coming weeks and it will be based in Stamford, Conn. Juicy Juice is the sixth acquisition the private equity firm has made from Nestle USA, and the third in the past 14 months.
Nestle is Wal-Mart supplier with a local sales office in Rogers.
• Hormel Foods muscles up
Hormel Foods recently entered into a definitive agreement to acquire CytoSport Holdings Inc., maker of Muscle Milk® products. The transaction is subject regulatory approvals in the United States, and is expected to close within 30 days.
As a provider of premium protein products in the sports nutrition category, CytoSport’s brands align with the company’s focus on protein while further diversifying the Hormel Foods portfolio, according to the release.
Total 2014 annual sales are expected to be approximately $370 million. The purchase price is approximately $450 million. Hormel Foods expects this acquisition to provide about 5 cents per share accretion in fiscal 2015, with a neutral impact to fiscal 2014 earnings, including transaction costs.
“Muscle Milk® products will serve as a growth catalyst for our Specialty Foods segment, providing this division with a leading brand in the high-growth sports nutrition category,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer at Hormel Foods. “The acquisition of CytoSport expands our offerings of portable, immediate, protein-rich foods, and broadens our appeal with younger consumers.”
Hormel is a Wal-mart supplier with a local sales office in Bentonville.
• Snyder’s Lance cuts costs
Charlotte-based Snyder’s-Lance Inc. said it will soon begin a major expense-reduction program that will involve job cuts and changes to the company’s operations.The nation’s second-largest snack maker offered few details on how the cost-cutting would be carried out. Management noted in a statement that more details will be provided in the company’s second quarter earnings report next month.
The company, which had total expenses of $1.6 billion in 2013, hopes to save about $22 million to $25 million each year. The effort is expected to start in the third quarter, which began Tuesday, (July 2).
“This is a major initiative for the company to ensure its cost base is managed aggressively,” the company said in a statement .
Snyder’s-Lance earned $16.8 million in the first quarter, down 15% from the year before. The company’s products include Lance crackers, Snyder’s of Hanover pretzels and Cape Cod chips.
Snyder’s Lance is a large supplier to Wal-Mart Stores Inc. with a sales office in Bentonville.