PepsiAmericas and PepsiCo to acquire juice company
June 07, 2007
by FoodBusinessNews.net Staff
MINNEAPOLIS — PepsiAmericas, Inc. and PepsiCo have agreed to jointly acquire 80% of Sandora L.L.C., a juice company in Ukraine.
The purchase price of the acquisition is $542 million plus assumed debt, and the transaction is expected to close in the third quarter of 2007.
"We have a clear strategy to grow through the expansion of our international business, and Sandora is a great fit," said Robert C. Pohland, chairman and chief executive officer of PepsiAmericas. "It provides immediate scale in a high growth market and a strong business platform to leverage and expand into other categories. Ukraine’s emerging economy and beverage market, coupled with Sandora’s strong brands and distribution capabilities, provide significant growth potential."
The two Pepsi companies will acquire 80% of Sandora through the means of a new joint venture in which PepsiAmericas will hold 60% interest. PepsiAmericas will manage day-to-day operations and Pepsi will strengthen brand development. In November, the joint venture anticipates acquiring the other 20% interest in Sandora.
Sandora has an assortment of brands that represent about half of the total juice consumed in Ukraine. The company has 3,500 employees and two modern production facilities in Nikolaev.