PepsiCo to acquire 66% of Wimm-Bill-Dann

by Staff
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PURCHASE, N.Y. — PepsiCo has agreed to acquire two-thirds of Wimm-Bill-Dann, a Russian food and beverage company with an emphasis in dairy and juice, for $3.8 billion. PepsiCo will also offer to acquire the remaining shares of Wimm-Bill-Dann through an offer following the completion of the acquisition.

“Adding Wimm-Bill-Dann to PepsiCo’s portfolio is financially attractive and gives us a strong, high-growth platform in the dairy category,” said Indra Nooyi, PepsiCo chairman and chief executive officer. “It also gives us clear leadership in the food and beverage industry in Russia, a fast-growing, strategically important market offering abundant opportunity. At the same time, Wimm-Bill-Dann’s strong, value-added dairy business immediately advances our global nutrition strategy to provide consumers around the world nutritious foods and beverages that are accessible, affordable and advantaged by science. Dairy has a huge, untapped potential to bridge snacks and beverages. We see the emerging opportunity to ‘snackify’ beverages and ‘drinkify’ snacks as the next frontier in food and beverage convenience.”

The acquisition will raise PepsiCo’s annual global revenues generated by what it defines as nutritious and functional foods from approximately $10 billion to nearly $13 billion and helps move the company closer to its goal of building a $30 billion nutrition business by 2020. Also, the acquisition will make PepsiCo about twice the size of the nearest food and beverage competitor in Russia, and the company’s brands will be first among food and beverage companies operating in Russia.

“The agreement reached with PepsiCo is a historic one for both our company and our country,” said Sergei Plastinin, chairman of the Wimm-Bill-Dann board of directors. “Wimm-Bill-Dann was founded just 18 years ago with a handful of employees, who were all based in one room, which saw the birth of our company name, our logo and our first juice brand, J7.

“Today we have over 16,000 people and 38 production facilities. In this time, Wimm-Bill-Dann has created great juice, dairy and toddler and baby food brands that are among the best loved and recognized in Russia and neighboring countries. Today we announced the planned coming together of our company with one of the most successful and best-known global companies. This represents a tremendous vote of confidence in the future of the Russian market. Integration into PepsiCo also provides our employees with access to a world-class corporate culture and almost unlimited career potential in one of the largest companies in the world.”

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