Coca Cola Buys Full Control of BodyArmor in Deal Valued at $5.6B

Beverage and food giant Coca Cola has acquired full control of BodyArmor for $5.6 billion, making it the largest ever brand acquisition.

The company announced the details on Monday about gaining full control fo the sports drink maker.

Acquiring the full control of BodyArmor helps Coke gain market share in the sports drink category. It was in 2018 that the company had purchased a 15% stake in BodyArmor, becoming its largest shareholder.

It was during that time that Kobe Bryant was its third-largest shareholder after investing in BodyArmor in 2013, just two years after its founding. The estate of the late NBA basketball legend will receive roughly $400 million from the sale, according to The Wall Street Journal.

According to Coke, the sports drink brand’s retail sales this year are expected to be more than $1.4 billion, up about 50% this year.

As part of the deal, BodyArmor co-founder Mike Repole, who founded Vitaminwater, will also collaborate on the company’s still beverages portfolio.

Repole and BodyArmor President Brent Hastie will also stick around to help BodyArmor in its quest to overtake Gatorade.

“After I spoke to [Chairman and CEO James Quincey], I asked him if I could be chairman of the board. I think he muted me after that,” Repole told CNBC’s Sara Eisen on “Squawk on the Street.”
He added, “But I wasn’t afraid to ask, so I’m going to try my best to get on the board.”

In a note published on Monday, consumer Edge Research analyst Brett Cooper wrote that it will be difficult to quantify Repole’s involvement with Coke, but it seems more likely to be positive rather than negative, given his past successes.

Credit Suisse analyst Kaumil Gajrawala wrote in a note last week that he expects the acquisition will be positive for Coke, citing Body Armor’s brand equity and the potential for Coke to distribute its sports drinks globally, like it did for Monster.

Shares of Coke have risen 2% this year so far.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.