Coco-Cola Buys Remaining 70% Stake in Bodyarmor

Coca-Cola has acquired BodyArmor, a line of sports performance and hydration beverages, for $5.6 billion in cash. On Monday, the company announced it would be purchasing the remaining 85% of BodyArmor after taking a 15% stake in 2018, marking its largest brand acquisition to date. The acquisition values BodyArmor at approximately $8 billion.

The company also stated that BodyArmor will be managed as a separate business within Coca-Cola North America’s operating unit and will continue to be based in Queens, New York. It also will continue to be distributed by the U.S. Coca-Cola bottling system.

The estate of Kobe Bryant, who became the third largest BodyArmor shareholder in 2013, stands to collect roughly $400 million for its stake, people familiar with the matter told the Journal.Coca-Cola has been shaking up its brand portfolio since the start of the coronavirus pandemic. Coca-Cola CEO James Quincey said the company would kill off approximately 200 drink brands in an effort to focus on brands that can be scaled to drive profits for the long term.

BodyArmor, which is currently the second-largest player in the sports drink category behind PepsiCo’s Gatorade, has generated more than $1.4 billion in retail sales, up about 50% this year. The company was founded in 2011.