PepsiCo Inc (PEP.O) will sell its controlling stake in Tropicana, Naked and other juice brands in North America to private equity firm PAI Partners for $3.3 billion, the beverage giant said on Tuesday.
File Photo: Pepsico's Tropicana juice is seen on display at a new Wal-Mart store in Chicago, in a January 24, 2012 file photo. REUTERS/John Gress/Fileswill sell its controlling stake in Tropicana, Naked and other juice brands in North America to private equity firm PAI Partners for $3.3 billion, the beverage giant said on Tuesday.
The sale will allow PepsiCo to concentrate on growing its portfolio of health-focused snacks and zero-calorie beverages, Chief Executive Officer Ramon Laguarta said. The company will retain a 39% stake in the new joint venture and have exclusive U.S. distribution rights for the brands. PepsiCo bought Tropicana, one of the world's most recognized juice brands in 1998 for roughly $3.3 billion and premium juice maker Naked Juice nearly a decade later for $150 million.
The juice businesses made about $3 billion in net revenue in 2020 with operating profit margins that were below PepsiCo's overall operating margins, the company said.More from ReutersSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
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