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Monday, June 30, 2014

Hormel Foods to purchase Muscle Milk products maker CytoSport Holdings, (NYSE: HRL)

Hormel Foods Corp said it would purchase CytoSport Holdings Inc for about $450 million, to add Muscle Milk sports nutrition products to its portfolio of brands. Hormel Foods said it expects the deal to be neutral to earnings in 2014 and add about 5 cents to earnings by in 2015.BofA Merrill Lynch served as the financial adviser to Hormel Foods in connection with the deal, the company said.Muscle Milk products contain lactose-free protein supplements and are often used by athletes and others seeking to build muscle mass.

Hormel Foods Corporation is primarily engaged in the production of a variety of meat and food products and the marketing of those products throughout the United States and internationally. Shares of HRL traded higher by 0.61% or $0.3/share to $49.35. In the past year, the shares have traded as low as $38.52 and as high as $49.87. On average, 694411 shares of HRL exchange hands on a given day and today's volume is recorded at 656964.