just The Facts - PepsiCo's deal for Wimm-Bill-Dann
PepsiCo doubles Russia sales with Wimm-Bill-Dann
- PepsiCo will pay US$3.8bn for a 66% stake in Wimm-Bill-Dann (WBD). Regulatory approval is expected by June, at which point PepsiCo has said it plans to launch an offer for all remaining shares in the group.
- The deal is set to more than double PepsiCo's annual sales in Russia, from US$2bn to $4.6bn, giving the combined entity twice the annual sales of the number two food and beverage group on the market. It will account for 50% of Russia's juice sales by volume, according to analysts. Meanwhile, Russia's economy is predicted to be the second biggest in Europe, behind Germany, by 2013.
- PepsiCo expects the deal to add to its earnings "from day one" and expects $100m in annual, pre-tax synergies by 2014. The deal will double its workforce in Russia to 31,000.
- PepsiCo said that the deal will increase its annual sales in nutrition from $10bn to $13bn, making the deal a "watershed" moment in the group's goal of building a $30bn global nutrition business by 2020.
- The combined entity will get 47% of annual sales from dairy, 25% from juice, 18% from other soft drinks and 10% from snacks. The compares to PepsiCo's current sales setup in Russia, in which juice contributes to 35% of sales, snacks 24% and other soft drinks 41%.
PepsiCo has held on to the top spot in a chart of commercial sponsorship spenders in the US in 2010....
SBK Beverage has confirmed to the Securities and Exchange Commission (SEC) in Thailand that its stake in Serm Suk is not "related to PepsiCo", according to local reports....
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