Coca-Cola announced on Monday that it will acquire full ownership of sports drinks company BodyArmor for $5.6 billion (€4.8bn).
The beverage giant bought 15 per cent of BodyArmor in 2018, and will continue to operate the firm as a separate business in North America, according to a statement.
According to a report in the Wall Street Journal, Coca-Cola already holds a 30 per cent stake in the sports drink group. The buyout, which would value BodyArmor at about $8 billion, would see the soda giant buy the remaining 70 per cent from BodyArmor’s founders and investors, as well as a group of professional athletes who have invested in the company.
The company was partly owned by late basketball great Kobe Bryant, who became a major shareholder in 2013. BodyArmor was backed at its founding in 2011 by Bryant, who died in a helicopter crash in early 2020 and had invested $6 million in the company. The Journal reported that Bryant’s estate should collect about $400 million from the deal, citing people close to the case.
“BodyArmor has been a great addition to the system lineup over the last three years, and the company has driven continuous innovation in hydration and health-and-wellness products,” said Alfredo Rivera, president of Coca-Cola’s North American operating unit.
BodyArmor is currently the second-biggest sports drink company with more than $1.4 billion in retail sales, the statement said.
The company’s co-founder and chairman Mike Repole and president Brent Hastie will stay on at the brand, which is looking at “explosive consumer demand” for premium sports drinks.
In a tribute to Bryant, Repole said, “If it wasn’t for Kobe Bryant’s vision and belief, BodyArmor would not have been able to achieve the success we had. I couldn’t be more excited to become part of the Coca-Cola family and set our sights on the future.”
BodyArmor is a competitor to industry giant Gatorade, which is owned by PepsiCo, Coca-Cola’s main business rival.
BodyArmor is a competitor to industry giant Gatorade, which is owned by PepsiCo, Coca-Cola’s main business rival
BodyArmor expects sales to reach $1.4 billion this year, compared to $250 billion in 2018 when Coca-Cola first invested in the company.