PEPSICO TO ACQUIRE SIETE FOODS FOR $1.2 BILLION

Core Viewpoint - PepsiCo has announced a definitive agreement to acquire Garza Food Ventures LLC, known as Siete Foods, for $1.2 billion, enhancing its portfolio with an authentic Mexican-American brand and expanding its better-for-you food offerings [1][2]. Company Overview - PepsiCo's acquisition of Siete Foods will complement its existing portfolio by adding a brand that focuses on heritage-inspired Mexican-American foods, which are increasingly popular among consumers [2]. - Founded in 2014, Siete Foods specializes in a variety of products including tortillas, salsas, seasonings, sauces, cookies, and snacks, primarily available in the U.S. [2][7]. - Siete Foods aims to inspire inclusivity around the dining table by offering delicious foods that cater to various dietary needs and preferences [7]. Strategic Intent - The acquisition aligns with PepsiCo's vision to expand its multicultural portfolio and reach more consumers with Siete's products, which are rooted in authenticity and cultural heritage [3]. - PepsiCo's CEO expressed excitement about carrying on the legacy of the Garza family and believes in the spirit of the Siete brand [3]. Financial and Transaction Details - The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first half of 2025 [3]. - Financial advisory roles were filled by Centerview Partners LLC and Citi for PepsiCo, while Lazard advised Siete Foods [4]. Market Position - PepsiCo generated over $91 billion in net revenue in 2023, driven by a diverse portfolio that includes iconic brands such as Lay's, Doritos, and Gatorade [5]. - The acquisition of Siete Foods is expected to enhance PepsiCo's offerings in the better-for-you food segment, which is increasingly important to consumers [2].