The Pepsi Bottling Group, Inc. (NYSE: PBG) and PepsiCo, Inc. (NYSE: PEP) today announced that, through their joint venture in Russia – PR Beverages Limited – they have signed an agreement with the shareholders of Sobol-Aqua JSC (“Sobol”) to acquire 100 percent of the privately-held company.
Upon the closing of the transaction, the joint venture will acquire the entire Sobol enterprise, which includes a production facility in Novosibirsk, Russia that manufactures Sobol brands and currently co-packs various Pepsi products.
The transaction is expected to close in the second quarter of 2008. Financial terms were not disclosed.
“One of our top priorities is to fully capitalize on the growth potential in Russia,” said PBG President and CEO Eric Foss. “The Sobol acquisition jumpstarts our manufacturing presence in the region and facilitates our expansion into Siberia and Eastern Russia. This investment will help our joint venture unlock new growth opportunities and position us well for continued success.”
PR Beverages Limited was formed in March 2007 to enable the Pepsi system to respond more quickly to dynamics in the Russian marketplace, strengthen the already effective relationship between PepsiCo and PBG in Russia, and enable both organizations to strategically invest in Russia to accelerate growth.
The Pepsi Bottling Group, Inc. (NYSE:PBG) is the world’s largest manufacturer, seller and distributor of Pepsi-Cola beverages. 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.
PepsiCo (NYSE: PEP) is one of the world’s largest food and beverage companies, with 2006 annual revenues of more than $35 billion. The company employs approximately 168,000 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 Dow Jones World Sustainability Index. For more information, please visit www.pepsico.com.