QUICK LINKS: Vending Videos  | Micromarkets  |

VT Classifieds

|

Buy a Classified Ad

|

Editorial Calendars

|

Circulation Data

|

Downloads

|

Bookstore

|

Operators Date Book

Search:      

Bookmark this site




Issue Date: Vol. 49, No.8, August 2009, Posted On: 8/5/2009


PepsiCo Reaches Agreements To Purchase Two Largest Bottlers


by Staff Reporter
PepsiCo, The Pepsi Bottling Group Inc., PepsiAmericas Inc., vending news, vending, vending machines, automatic retailing, vending business, beverage distribution, soft-drink stock, Indra Nooyi

PURCHASE, NY -- PepsiCo has entered into definitive agreements to buy its two largest bottlers. The drink and snack giant has agreed to acquire all of the outstanding shares of common stock it does not own in The Pepsi Bottling Group Inc. (Somers, NY) and PepsiAmericas Inc. (Minneapolis), valued at approximately $7.8 billion.

PepsiCo will pay PBG shareholders $36.50 a share in either cash or stock and PepsiAmericas shareholders $28.50 a share. The purchase price is higher than the $29.50 and $23.27 per share, respectively, that PepsiCo had offered in April and the bottlers rejected.

PepsiCo spun off PBG and PepsiAmericas as separate companies in 1999. By buying them back, it will consolidate 80% of its North American beverage volume. This will speed decision-making, allow the company to bring new products to market faster, streamline its manufacturing and distribution systems, and bundle its food and beverage offerings, according to officials. PepsiCo anticipates that the efficiencies achieved by integrating the beverage businesses will save the combined entity $300 million in annual costs by 2012.

"While the existing model has served the system very well, it is clear that the changing dynamics of the North American liquid refreshment beverage business demand that we create a more flexible, efficient and competitive system that can drive growth across the full range of PepsiCo beverage brands," said PepsiCo chief executive Indra Nooyi.

The acquisitions, expected to close late this year or early in 2010, are subject to regulatory approvals and approval by stockholders of both bottling companies.


Topic: Vending Features

Articles:
  • Retail Mindset And Connected Clientele Advance Social And Smarter Micromarkets
  • TouchGo Teams Up With Zapp In Mobile Payment For Vending In UK
  • Dallas County Jail Considers Video Payphones
  • Political Analyst Charlie Cook Will Speak At NAMA's Upcoming Public Policy Conference
  • Raw Juice Bot Is Attempting To Bring Juicing Craze To Vending

Copyright © 2014 Vending Times Inc. All rights reserved. 
P: (516) 442-1850 | F: (516) 442-1849 | subscriptions@vendingtimes.net
55 Maple Ave. - Ste. 304, Rockville Centre, NY 11570