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PepsiCo wants to acquire top-two distributors in cash-and-stock deals
By Lisa Kerner
Charlotte, N.C., April 20 - PepsiCo, Inc. announced it proposed to buy all of the outstanding shares of common stock it does not already own in its two largest anchor bottlers.
The total value of the shares PepsiCo is proposing to acquire is approximately $6 billion, the company said.
According to PepsiCo, its offer for Pepsi Bottling Group Inc. consists of $14.75 in cash plus 0.283 shares of PepsiCo common stock for a total value of $29.50 per share.
Its offer for PepsiAmericas Inc. consists of $11.64 in cash plus 0.223 shares of PepsiCo common stock for a total value of $23.27 per share.
The per-share offer price for each company is a 17.1% premium to its closing stock price on April 17, PepsiCo said.
PepsiCo, a Purchase, N.Y., food and beverage company, said acquiring Pepsi Bottling and PepsiAmericas would create "a leaner, more agile business model and provide a stronger foundation for PepsiCo's future growth."
Indra Nooyi, PepsiCo chairman and chief executive officer, said consolidating the bottling businesses would create many benefits.
"We could unlock significant cost synergies, improve the speed of decision making and increase our strategic flexibility," Nooyi said in a company news release.
Annual pre-tax synergies as a result of the consolidation are estimated to be more than $200 million.
Both Pepsi Bottling and PepsiAmericas' boards of directors acknowledged receipt of PepsiCo's unsolicited, non-binding proposal and said they will respond "in due course."
Centerview Partners, Banc of America Securities and Merrill Lynch are advising PepsiCo.
Pepsi Bottling, based in Somers, N.Y., is the world's largest manufacturer, seller and distributor of Pepsi-Cola beverages.
Minneapolis-based PepsiAmericas is the world's second-largest manufacturer, seller and distributor of PepsiCo beverages.
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