COKE TO TAKE OVER SPORTS DRINK BRAND BODYARMOR FOR $5.6B

Mon 01 November 2021:

According to the Wall Street Journal, Coca-Cola has been preparing to purchase complete control of the sports drink company BodyArmor in a $5.6 billion deal.

Coca-Cola already owns a 30% stake in the sports drink conglomerate.

BodyArmor’s founders and investors, as well as a group of elite athletes who have invested in the company, would sell the remaining 70% of the company to Coca-Cola, valuing it at around $8 billion.

Basketball legend Kobe Bryant, who died in a helicopter crash in early 2020 and had invested $6 million in BodyArmor, backed the company when it was founded in 2011.

According to the Journal, Bryant’s estate should receive around $400 million from the sale, citing sources close to the matter.

BodyArmor did not immediately reply to a request for comment, while Coca-Cola said it does not comment on rumors or speculation.

BodyArmor anticipates increased sales

BodyArmor is a competitor to industry giant Gatorade, which is owned by PepsiCo, Coca-Cola’s main business rival.

BodyArmor anticipates revenues of $1.4 billion this year, up from $250 billion when Coca-Cola originally invested in the company in 2018.

In May, the beverage giant dropped its own Coca-Cola Energy drink in North America, but kept a majority investment in Monster Beverage Corp, one of the country’s leading energy drink producers.

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