PepsiAmericas and PepsiCo acquire juice company

by Eric Schroeder
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PURCHASE, N.Y. — PepsiAmericas, Inc. and PepsiCo, Inc. have completed the joint purchase of 80% of Ukrainian juice company Sandora L.L.C.

PepsiAmericas expects the transaction to add 4 percentage points to volume, lower net pricing by 2 points and cost of goods sold per unit by 1 point as well as add to selling, delivery and administrative expenses. The company also expects Sandora will add 1 percentage point to operating profits, which will drive estimated reported operating profit growth to 15% to 18%. The operating income contribution in 2007 will be offset with higher related interest expense and the minority interest recorded mainly for PepsiCo’s 40% interest in the joint venture, the company said.

"We’re excited to extend our strong partnership with PepsiCo and begin working with the Sandora team and its market-leading brands to capture the growth opportunities in Ukraine," said Robert C. Pohlad, chairman and chief executive officer of PepsiAmericas. "We have a clear strategy to grow and expand our international business and Sandora is a great fit, providing immediate scale in a high growth market."

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