1 Nov 2021
Coca Cola to Acquire BodyArmor in $5.6 Billion Deal
The Index Today
Coca Cola has announced deal to purchase BodyArmor for $5.6 billion after the sports drink brand was initially valued at $8 billion.
The company already has a 30% stake in BodyArmor and aims to buy the rest of the share to gain complete control of the brand. The remaining shares will be bought from the company’s founders and investors which include famous names such as a NBAs James Harden who helped build the brand image.
Kobe Bryant was an initial supported of BodyArmor and it is reported that his estate could fetch around $400 million. The praised basketball player had an initial investment of $6 million in the company and was a member of the board up till his death in 2020.
Gatorade is leading player in the sports drink industry but has received much competition from rival BodyArmor. It is expected that the company will earn a retail sales value of $1.4 billion in the current year. Coca Cola reported earlier this year that it was in talks with BodyArmor to come to a deal for majority control.
This will be the largest transaction to happen in the entire history of coca cola’s acquisition deals. Previously the giant acquired Costa Coffee for a whopping $5.1 billion in a move to expand its drinks business and market position. In 2007, Glaceau was also bought by coca cola for $4.1 billion making it another major transaction in the company’s history.