PepsiCo sells Bradenton-based Tropicana and other juice brands for $3.3 billion

Tropicana is one of the largest employers in the Bradenton area and was founded in 1947 by Anthony T. Rossi. In 1970, he developed a rapid pasteurization method and pioneered the train transportation of orange juice from Florida to New York. Pepsi-Cola acquired Tropicana from Seagram Co. Ltd for $3.3 billion in 1998, initially keeping the company’s headquarters in Bradenton. In 2004, the company moved Tropicana’s executive office to Chicago. PAI, a private equity company with extensive experience in the food and beverage industry, will become the major shareholder of the transferred business. PepsiCo retains exclusive distribution rights in the United States for its first-class frozen direct store brand portfolio.

PepsiCo

Ramon Laguarta, Chairman and CEO of PepsiCo, said in a press release:

“The joint venture with PAI allows us to realize significant upfront value while providing the necessary focus.

The juice business achieved a net income of approximately US$3 billion in 2020, and its operating profit margin is lower than PepsiCo’s overall operating profit margin in 2020. This business.

The transaction is expected to be completed by the end of 2021 or early 2022, depending on customary conditions, including work council consultation and regulatory approval.

Pepsi-Cola products are sold to more than 200 countries and regions around the world.
Driven by a complementary food and beverage product portfolio including Frito-Lay, Gatorade, Pepsi, Quaker, Tropicana, and Soda Stream, PepsiCo will generate more than $70 billion in net revenue in 2020.

We are very satisfied to slot these well-known drink brands into the PAI manufactured goods collection through collaboration with a leading global food and beverage company.

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Frédéric Stévenin, the managing partner of PAI, stated in the press release that we believe in product innovation Investment, expansion into adjacent categories, and expansion of branded juice beverages and other refrigerated categories can realize huge growth potential.

Center sight Partners LLC acted as monetary advisor to PepsiCo. Gibson, Dunn & Crutcher LLP served as PepsiCo’s chief legal counsel, and Davis Polk & Wardwell LLP served as US tax and antitrust legal counsel. J.P. Morgan Securities LLC acted as financial advisor to PAI.

PAI Partners is a private equity firm that invests in leading companies in the global market. It has extensive experience in the food and beverage sector and currently invests in Froneri, the world’s second-largest ice cream manufacturer, and Ecotone, a leader in healthy and sustainable food.

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