just The Facts – PepsiCo’s deal for Wimm-Bill-Dann

PepsiCo is to buy a 66% stake in Wimm-Bill-Dann for US$3.8bn. Here, just-drinks brings you the key figures in this deal.

• 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%.

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