Coca-Cola shelled out big bucks to buy the entirety of energy drink company Bodyarmor for $5.6 billion today. 

Coca-Cola owned a 15% stake in Bodyarmor before today, which it purchased in 2018. Since then, the brand has grown to become the #2 sports drink in the world.  Bodyarmor has seen impressive revenue growth in recent years, hitting over a billion in annual retail sales thanks to a star-studded cast of athletic investors (James Harden, Mike Trout, and Kobe Bryant.) 

By positioning itself as a healthier sports drink alternative, Bodyarmor has overtaken Coke’s Powerade in the market. The acquisition hopes to offer Coca-Cola a better chance of chasing down Pepsico‘s Gatorade, which still owns 70% of the entire sports drink market. 

Bodyarmor’s Co-Founder, Mike Repole, will oversee part of Coke’s beverages portfolio (including Vitamin Water, Smart Water, and Energy Brands). He’s also reportedly chasing a chairman role for Coca-Cola.