MOSCOW, Aug. 28 Pepsi-acquisition-JSC
MOSCOW, Aug. 28 /PRNewswire-FirstCall/ -- PepsiCo (NYSE: PEP) and The
Pepsi Bottling Group (NYSE: PBG) today announced that they have completed a
joint acquisition of a 75.53% stake in Russia's leading branded juice company
JSC Lebedyansky (RTS: LEKZ). 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. PepsiCo and PBG
indicated the transaction will not materially affect their previously provided
guidance for 2008.
Today 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.
JSC Lebedyansky (RTS: LEKZ, MICEX: LBDO) is the leading company in the
Russian juice market. Its production volumes grew more than 30-fold between
1999 and 2007, while its share of the Russian juice market quadrupled. JSC
Lebedyansky's volume market share in the Russian juices/nectars category is
over 30%. The Company manages a well-balanced portfolio consisting of premium
segment brand "Ya", medium segment brands "Frustyle" and "Tonus", and value
segment brands "Fruktovy Sad", "Privet", and "Dolka". JSC Lebedyansky has a
well-developed distribution network that covers all of Russia as well as
Ukraine, Kazakhstan, Azerbaijan and Belarus. More information on the company
can be found at www.lebedyansky.com.
PepsiCo (NYSE: PEP) is one of the world's largest food and beverage
companies, with 2007 annual revenues of more than $39 billion. The Company
employs approximately 185,000 people worldwide, and its products are sold in
approximately 200 countries. Its principal businesses include: Frito-Lay
snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and
Quaker foods. The PepsiCo portfolio includes 17 brands that generate
$1 billion or more each in annual retail sales. PepsiCo's commitment to
sustainable growth, defined as Performance with Purpose, is focused on
generating healthy financial returns while giving back to communities the
Company serves. This includes meeting consumer needs for a spectrum of
convenient foods and beverages, reducing the Company's impact on the
environment through water, energy and packaging initiatives, and supporting
its employees through a diverse and inclusive culture that recruits and
retains world-class talent. PepsiCo is listed on the Dow Jones North America
Sustainability Index and the Dow Jones World Sustainability Index. For more
information, please visit www.pepsico.com.
The Pepsi Bottling Group, Inc. (NYSE: PBG) is the world's largest
manufacturer, seller and distributor of Pepsi-Cola beverages. PBG accounts for
more than one-half of the Pepsi-Cola beverages sold in North America, and
about 40 percent of the Pepsi-Cola system volume worldwide. With approximately
70,000 employees and annual sales of nearly $14 billion, PBG has operations in
the U.S., Canada, Greece, Mexico, Russia, Spain and Turkey. Roughly 30 percent
of the company's operations are outside of the U.S. For more information,
please visit www.pbg.com.
Cautionary Statement
This release contains statements concerning PepsiCo's and The Pepsi
Bottling Group's expectations for future performance, including 2008 guidance.
These "forward-looking statements" are based on currently available
information, operating plans and projections about future events and trends.
They inherently involve risks and uncertainties that could cause actual
results to differ materially from those predicted in such forward-looking
statements. Such risks and uncertainties include, but are not limited to:
changes in demand for PepsiCo's and The Pepsi Bottling Group's products, as a
result of shifts in consumer preferences or otherwise; the ability of PepsiCo
and The Pepsi Bottling Group to maintain their respective reputations and
build and sustain their information technology infrastructures; fluctuations
in the cost and availability of raw materials; the respective abilities of
PepsiCo and The Pepsi Bottling Group to compete effectively; disruption of
supply chain; trade consolidation; the loss of any key customer; unforeseen
costs and complexities that may prevent us from realizing our expected rate of
return on the acquired business; changes in the legal or regulatory
environment; the ability to hire or retain key employees or to outsource
certain functions effectively; unfavorable economic, environmental or
political conditions in the countries where PepsiCo and The Pepsi Bottling
Group operate; and market risks arising from changes in commodity prices,
foreign exchange rates and interest rates. For additional information on these
and other factors that could cause PepsiCo's or The Pepsi Bottling Group's
actual results to materially differ from those set forth herein, please see
their respective filings with the Securities and Exchange Commission,
including their most recent annual reports on Form 10-K and subsequent reports
on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on
any such forward-looking statements, which speak only as of the date they are
made. PepsiCo and The Pepsi Bottling Group undertake no obligation to update
any forward looking statements, whether as a result of new information, future
events or otherwise.
SOURCE PepsiCo
