PepsiCo reached an agreement to acquire all the shares of the South African company Pioneer Foods Group for 1,700 million dollars, which will allow the US soft drinks and snacks company to reinforce its expansion in South Africa.
This acquisition will help PepsiCo achieve a solid ‘beachhead’ for its expansion in South Africa by boosting the company’s manufacturing and commercialization capabilities, allowing scale and distribution, explained the Spanish-led multinational, Ramón. Laguarta.
Specifically, PepsiCo will pay in cash 110,000 rands for each share of Pioneer Foods, representing a premium of 56% over the weighted average price of the 30 days prior to the announcement of the operation.
“Pioneer Foods represents a differentiated opportunity for PepsiCo and allows us to immediately scale up our business in Africa,” Laguarta said, adding that the activities of the companies are “highly complementary.”
PepsiCo said: “We will have a larger scale to expand our leading brands, more capital to invest in local agriculture and people, greater access to world-leading capabilities and a committed partner to take our company to even higher levels. older,” added Tertius Carstens, CEO of Pioneer Foods.
K. Tovar
Source: Inforetail
