PepsiCo and The Pepsi Bottling Group Complete Acquisition of Majority Stake in Russian Juice Leader
Under agreements reached, PepsiCo and PBG have acquired through a joint venture the 75.53% of Lebedyansky held by its four largest individual shareholders. The venture is owned 75%/25% by PepsiCo and PBG, respectively.
29/08/08 PepsiCo and The Pepsi Bottling Group announced that they have completed a joint acquisition of a 75.53% stake in Russia 's leading branded juice company JSC Lebedyansky. PepsiCo and PBG will initiate a mandatory offer for the remaining shares of Lebedyansky, in accordance with Russian law, in the near future. The acquisition does not include the company's baby food and mineral water businesses, which earlier were spun off to shareholders in a separate transaction.
Lebedyansky is the world's sixth-largest juice manufacturer and the largest in Russia , with an estimated market share in Russia of around 30% and annual revenues in 2007 of approximately $800 million from its juice business.
“We're looking forward to building Lebedyansky's portfolio of strong, popular brands in one of the world's fastest-growing juice markets,” said Michael White, PepsiCo International CEO and vice chairman of PepsiCo. “It's yet another way we're transforming our product lineup to include more beverages and foods that address the growing consumer interest in health and wellness.”
“The combination of our strong brand portfolio, superior go-to-market capabilities, and talented workforce has enabled PBG to build a strong and growing business in Russia ,” said PBG President and CEO Eric Foss. “Lebedyansky has a reputation for excellence in each of these three areas as well, making them a terrific addition to the Pepsi family. Working together, PBG, PepsiCo and Lebedyansky will expand the Russian juice category in ways that benefit both customers and consumers.”
Under agreements reached, PepsiCo and PBG have acquired through a joint venture the 75.53% of Lebedyansky held by its four largest individual shareholders. The venture is owned 75%/25% by PepsiCo and PBG, respectively.
The approximately US$1.4 billion PepsiCo and PBG paid to acquire the stake in Lebedyansky implies a total enterprise value for Lebedyansky, including debt and spin-off related adjustments, and excluding the company's baby food and mineral water business, of approximately US$2 billion.
Additional terms of the agreement were not disclosed. P epsiCo and PBG indicated the transaction will not materially affect their previously provided guidance for 2008 .
Now PepsiCo and its strategic bottling and distribution partner, The Pepsi Bottling Group, provide more than 7,000 jobs in Russia , and their products can be found in more than 98% of retail outlets across the country.
