Bottles of Tropicana orange juice are displayed on the shelves of a grocery store in San Rafael, California.
Justin Sullivan | Getty Images
PepsiCo On Tuesday, it announced that it had agreed to sell Tropicana, Naked and other North American juice brands to a French private equity fund.
The deal with PAI Partners will bring Pepsi’s pre-tax cash revenue to $ 3.3 billion. The food and beverage giant will also receive a 39% stake in a newly established joint venture with PAI and exclusive US rights to sell juice brands for specific channels such as food services.
In a statement, Pepsi CEO Ramon Laguarta said, “This joint venture with PAI provides the focus and resources needed to drive the long-term growth of these beloved brands, while providing significant upfront value. Can be achieved. “
PAI also has an irrevocable option to purchase certain Pepsi Juice businesses in Europe.
The transaction is expected to close in late 2021 or early 2022. Pepsi said it would use the proceeds from the sale to strengthen its balance sheet and invest in its business.
In 2020, the brands involved in the transaction generated approximately $ 3 billion in revenue for Pepsi, which was below the company’s overall operating profit. Pepsi reported net sales of $ 70.37 billion in 2020.
Many food and beverage businesses, including rivals Coca ColaHas spent the past year and a half trimming its portfolio in response to a pandemic. In some cases, like Nestle’s sale of its North American water business, private equity companies with lots of cash in their pockets have soared their brands in auction blocks, rather than rival food and beverage companies.
Pepsi’s share has risen 5% this year to a market value of $ 216 billion. In pre-market trading in the news, stock prices rose less than 1%. In the latest quarter The company’s quarterly revenue surged by more than 20% As the restaurant demand for the drink has returned.
PepsiCo sells Tropicana and other juice brands for $ 3.3 billion
Source link PepsiCo sells Tropicana and other juice brands for $ 3.3 billion