PepsiCo completes purchase of bottlers
March 1, 2010
PURCHASE, N.Y. — PepsiCo, Inc. has completed its $7.8 billion acquisition of its two largest bottlers, The Pepsi Bottling Group, Inc. and PepsiAmericas, Inc.
“Today marks day one of the new PepsiCo,” said Indra Nooyi, chairman and chief executive officer. “Bringing together these three great companies enables us to create the industry’s fastest, most flexible and most efficient food and beverage system. It will leverage the capabilities of our entire enterprise — what we call The Power of One — to achieve many years of healthy, profitable growth.
“The investment opens up a broad range of new growth opportunities around the world, particularly in North America, which accounts for the majority of our revenues, and offers the prospect of significant growth. We have approximately 115,000 employees in the U.S. alone, and we are committed to continuing to invest in this critically important market.”
The company affirmed its previous guidance of 11% to 13% core constant currency e.p.s. growth in 2010.
It also said it anticipates low-double-digit core constant currency e.p.s. growth in 2011 and 2010.
The company said the benefits of the acquisition include that 80% of its North American beverage manufacturing, sales and distribution system will e consolidated under one roof as well as creates significant cost savings.