PepsiCo to acquire bottlers

by FoodBusinessNews.net Staff
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PURCHASE, N.Y. — PepsiCo, Inc. has entered a definitive merger agreement with both The Pepsi Bottling Group, Inc. and PepsiAmericas, Inc. Under the agreement, PepsiCo will acquire all outstanding shares of common stock it does not already own in its two largest bottlers.

"PepsiCo has had a constructive partnership with P.B.G. and P.A.S. over the past 10 years," said Indra Nooyi, chairman and chief executive officer. "While the existing model had served the system very well, it is clear the changing dynamics of the North American liquid refreshment beverage business demand we create a more flexible, efficient and competitive system that can drive growth across the full range of PepsiCo beverage brands. Our shared culture, strong operational leadership and ability to successfully integrate operations — in this case operations we know very well — should allow us to bring the businesses together quickly and seamlessly."

Under the agreement, P.B.G. shareholders will have the option of either $36.50 in cash or 0.6432 shares of PepsiCo common stock for each share of P.B.G. P.A.S. shareholders will have the option of either $28.50 in cash or 0.5022 shares of PepsiCo common stock for each share of P.A.S.

The total value of the shares PepsiCo is acquiring is about $7.8 billion, and it will create one of the largest food and beverage companies globally.

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