PepsiCo, the global snacks and drinks giant, has announced that it has entered into an agreement to acquire all the shares of leading South African food manufacturer Pioneer Foods for approximately $1.7 billion.
In a press release, PepsiCo described Pioneer Foods as having a “robust, locally relevant” product portfolio of cereals, juices and other African food staples, including well-known brands like Weet-Bix, Liqui-Fruit, Ceres, Sasko, Safari, Spekko, and White Star, that will complement PepsiCo’s current lineup.
The acquisition will also help PepsiCo gain a solid base for expansion into sub-Saharan Africa by boosting the company’s manufacturing and go-to-market capabilities, the firm added.
Commenting on the deal, PepsiCo chairman and CEO Ramon Laguarta said: “As we look to accelerate our growth in key markets around the world and achieve our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose, we are absolutely thrilled to join forces with Pioneer Foods, one of South Africa’s leading food and beverage companies”.
“Today’s announcement marks a very exciting milestone for Pioneer Foods and our people, and highlights the strength of what we have created”, added Pioneer Foods CEO Tertius Carstens. “As part of PepsiCo, we will have greater scale to expand our leading brands, greater capital to invest in local agriculture and people, greater access to leading global capabilities and a partner committed to taking our company to even greater heights”.