US-based Hormel Foods has entered into a definitive agreement to acquire Muscle Milk products maker CytoSport for $450m.

The move is said to be in line with the company’s strategy to focus on protein business.

CytoSport’s ready-to-drink protein beverage products are expected to complement the existing portfolio of Hormel Foods.

Hormel Foods president and CEO Jeffrey Ettinger said the acquisition will expand the company’s offerings of portable, immediate, protein-rich foods.

"Muscle Milk® products will serve as a growth catalyst for our Specialty Foods segment, providing this division with a leading brand in the high-growth sports nutrition category," Ettinger added.

The acquisition is expected to be completed by the end of July this year, after receiving customary closing conditions, including the receipt of regulatory approvals in the US.

Hormel Foods is anticipated to generate around $370m in total annual sales for the year 2014.

Additionally, the company expects the acquisition to provide about 5 cents per share accretion in fiscal 2015, with a neutral impact to fiscal 2014 earnings, including transaction costs.

Hormel Foods has appointed BofA Merrill Lynch to play exclusive financial advisory role in the transaction.

Image: Old Hormel building. Photo: courtesy of Hraefen.