Coca-Cola (KO) – Get Coca-Cola Company Report plans to buy full control of sports drink company BodyArmor for $5.6 billion, people familiar with the deal told The Wall Street Journal.
The transaction would value BodyArmor at about $8 billion, The Journal reported on Sunday.
Coke will buy the remaining 70% of the company that it doesn’t own from its founders, investors and professional athletes who invested and helped promote the drink, including the NBA’s James Harden, MLB’s Mike Trout and Mookie Betts and the NFL’s Kyler Murray and Baker Mayfield. The late former NBA star Kobe Bryant also had been an investor in BodyArmor, according to its website.
Coke, which currently owns 30% of BodyArmor, bought its initial stake in the sports drink company in August 2018. The original agreement gave the Whitestone, N.Y., sports drink company access to Coke’s expansive bottling system to help accelerate its growth.
The Gatorade rival is on track for $1.4 billion in retail sales this year.
BodyArmor SuperDrink, created by co-founders Mike Repole and Lance Collins, contains potassium and other electrolytes, vitamins and coconut water. It has no artificial colors or flavors. The company also markets BodyArmor Lyte, which has all the nutrients of BodyArmor but is naturally sweetened, has only 20 calories and 3 grams of sugar per serving.
BodyArmor SportWater is a premium sport water designed by athletes for athletes with a performance pH 8+ and electrolytes for sport.
Coke in May discontinued its Coca-Cola Energy drink that it launched in January 2020 to compete with Red Bull and Monster Beverage (MNST) – Get Monster Beverage Corporation (MNST) Report.
Shares of Coke on Friday closed 0.6% higher at $56.37. The stock rose 0.04% in after-hours trading.