PAI Partners, a French private equity firm, has announced an agreement to acquire Tropicana, Naked and other juices brands from US food and beverage company PepsiCo for about $3.3 billion.
Pepsi Co will retain the exclusive US distribution rights to the brand portfolio. According to sources, the benefits from the sale are expected to enhance PepsiCo’s balance sheet and allow it to make organic investments.
PepsiCo chairman and CEO Ramon Laguarta commented: “This joint venture with PAI enables us to realize significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands. In addition, it will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream which are focused on being better for people and the planet”.
PAI managing partner Frédéric Stévenin said: “We are delighted to bring these storied beverage brands into the PAI portfolio through another partnership with a leading global food and beverage company. We believe there is great growth potential to be realized through investments in product innovation, expansion into adjacent categories, and enhanced scale in branded juice drinks and other chilled categories”.
Source: PAI Partners