Through the purchase, BodyArmor will gain access to the Coca-Cola bottling system, allowing it to accelerate its growth.
Meanwhile, BodyArmor will allow Coca-Cola to strengthen its position in the sports drink sector.
Gatorade, owned by rival PepsiCo, currently occupies around three-quarters of the sports drink market whilst Coca-Cola's Powerade has the second-largest market share.
“BodyArmour is one of the fastest growing beverage trademarks in America and competes in exciting categories,” said Coca-Cola North America President Jim Dinkins.
“I have no doubt it will prove to be a strong offering to our system alongside our already powerful hydration portfolio as we accelerate our position as a total beverage company.”
BodyArmor co-founder and chairman, Mike Repole, said he was confident that the agreement will help the company accelerate its growth and become a leading sports performance and hydration brand.
“This is thanks to the strength and scale of Coca-Cola’s newly refranchised and energised bottling system in North America, as well as longer-term opportunities for international growth,” he added.
In 2016, Dr Pepper Snapple said that it increased its investment in BodyArmor’s parent company — BA Sports Nutrition — to $26mn, raising its ownership position to 15.5%.
Coca-Cola company did not disclose the size of its investment but said that BodyArmor will continue to operate as its own brand.