According to people familiar with the matter, Coca-Cola (KO.US) is close to complete acquisition of its partly controlled sports drink brand BodyArmor, which is estimated to be valued at US$8 billion after the acquisition. People familiar with the matter said the transaction may be completed in the next few weeks. A Coca-Cola spokesperson declined to comment, and a representative of BodyArmor did not respond to a request for comment.
In a document submitted on February 24, Coca-Cola has stated that the company plans to exercise its option to acquire the remaining ownership interest of BodyArmor, and the transaction must be approved by the regulatory authorities.
It is understood that in 2018, Coca-Cola acquired a minority stake in BodyArmor, and the late basketball star Kobe Bryant was one of the company’s early investors. Through this round of investment, Coca-Cola became the second largest shareholder of BodyArmor, second only to co-founder Mike Repole.
At present, just like rival Pepsi (PEP.US), as consumers return to public places such as restaurants and stadiums, the demand for beverages in the market continues to rise, and Coca-Cola is also benefiting from it.
This transaction is expected to accelerate Coca-Cola water, sports drinks andcoffeeSales of business. In the third quarter, single-box sales of this business increased by 6%, which was the same as carbonated beverage products, but lags behind nutrition,juiceAnd dairy beverages grew by 12%.
However, according to data from Euromonitor Information Consulting, compared to Pepsi’s sports drink brand Gatorade, even if the acquisition of BodyArmor is completed, Coca-Cola’s market share in the sports drink market will only account for 23%, far lagging behind. 68% of Gatorade.