The Coca-Cola company announced that it has acquired remaining $5.6 billion worth of stake in BODYARMOR (a line of sports performance and hydration beverages) giving itself the full ownership.
In the year 2018, Coca-Cola initially acquired 15% stake in BODYARMOR with a path to full ownership.
Under a separate consulting and transition-services agreement, the executive leadership team, including Co-founder and Chairman Mike Repole and President Brent Hastie, has agreed to continue to work to maintain the brand’s successful momentum in the market.
BODYARMOR will continue to be distributed by the U.S. Coca-Cola bottling system. After the investment made by Coca-Cola in 2018, BODYARMOR gained access to the Coca-Cola system, which helped BODYARMOR to accelerate its growth to meet explosive consumer demand for premium sports and hydration beverages.
The president of the North America, Alfredo Rivera, said:
“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,” operating unit of The Coca-Cola Company. “We’re excited to bring BODYARMOR into The Coca- Cola Company and work with Mike Repole and his leadership team on the next stage of growth.”
As part of the agreement, Coca-Cola and Mike Repole will also club together on the company’s still beverages portfolio, including packaging, marketing and innovation strategies across multiple brands.
Coca-Cola’s acquisition of BODYARMOR will be funded through cash on-hand and is consistent with an M&A and capital allocation framework that focuses on accelerating growth, expanding capabilities and driving efficiencies. the company Coca-Cola pursues brands and products that are complementary to the overall portfolio and have growth opportunities for the long term.
