AMASS Brands Group (NASDAQ:AMSS) said Monday it plans to acquire a majority stake in sparkling protein water brand HpO, expanding its presence in the fast-growing functional hydration market as consumer demand for high-protein beverages continues to rise.
The proposed transaction would increase AMASS’s ownership in HpO from about 15% to approximately 50.0001% on a fully diluted basis
Additionally, the company also secured a three-year option to acquire the remaining interest at a purchase price equal to two times revenue. Financial terms beyond the stock-based consideration were not disclosed. Deal Targets Fast-Growing Protein Beverage Market HpO produces sparkling protein water containing 5 grams of plant-based protein per can, with zero sugar, no artificial sweeteners and about 22 to 30 calories per serving.
The brand currently offers Lemon and Blood Orange flavors and plans to expand into additional ready-to-drink and hydration products. AMASS said the acquisition aligns with growing consumer demand for protein-rich beverages, particularly as the use of GLP-1 weight-loss medications encourages shoppers to seek high-protein, low-sugar products. “The widespread adoption of GLP-1 medications is only intensifying that demand,” Chief Executive Officer Mark Thomas Lynn said. “HpO sits at the convergence of these powerful forces.” Meanwhile, industry research cited by the company estimates the U.S. protein water market, valued at about $861 million in 2024, could reach nearly $2 billion by 2034. Read Also:AMASS Unveils Zero-Sugar Electrolyte Mixers Wellness Line As Global Expansion Scales AMASS Plans National Expansion AMASS said it plans to leverage its wholesale distribution network and retail relationships to expand HpO’s national footprint.