PepsiCo to sell its juice brands to PAI Partners - report

Tuesday, 03. August 2021 12:14

PepsiCo Inc. is looking to sell its Tropicana, Naked and other juice brands in North America to private-equity company PAI Partners in a deal valued at $4.5 billion, according to a report published by The Wall Street Journal on Tuesday.

The decision, which will earn PepsiCo $3.3 billion in pretax proceeds, comes as the overall juice consumption continues to decrease. However, PepsiCo will still possess a 39% stake in the new joint venture.

PepsiCo acquired Tropicana orange juice brand from Seagram Co. for $3.3 billion in 1998, and it still remains one of the most consumed brands in the United States. According to people familiar with the deal, PepsiCo will use the funds earned from the deal to invest in its business.

Related Links: PepsiCo Inc.
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Breaking the News / ND