Coca-Cola has made its largest acquisition to date, paying $5.6 billion for full control of sports drink company BodyArmor.
The beverage giant will buy the 85% of BodyArmor it didn’t already own. On Friday, reports came out that a deal was in the works. Coke initially bought into BodyArmor in 2018.
- The estate of Kobe Bryant will receive around $400 million. Bryant invested in BodyArmor in 2013, putting in $6 million. He sat on the company board until he passed away in 2020.
- Coca-Cola announced the acquisition at 8:24 a.m. ET on Monday to honor Bryant, who wore Nos. 8 and 24 on his jerseys.
- James Harden and Mike Trout are also investors and spokespeople for BodyArmor.
The transaction will bump Coca-Cola’s $4.9 billion acquisition of coffee company Costa, which closed in January 2019, to second place among the company’s biggest deals. Coca-Cola acquired Vitaminwater-maker Glaceau, co-founded by BodyArmor founder Mike Repole, for $4.1 billion in 2007.
BodyArmor expects to notch around $1.4 billion in 2021 sales — a far cry from the $250 million it garnered in 2018. With BodyArmor in the fold, Coca-Cola, which also owns Powerade, will have around 23% of the sports drink market.
PepsiCo-owned Gatorade dominates the category with a 68% share.