PepsiCo announced on Tuesday that it has agreed to sell Tropicana and other juice brands in North America to a French private equity firm for $3.3 billion.
With the deal with PAI Partners, Pepsi looks to simplify its product range and move away from high-sugar drinks. It will keep a 39% stake in the new joint venture and the exclusive U.S distribution rights for the brands.
“This joint venture with PAI enables us to realize significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands,” Pepsi’s CEO, Ramon Laguarta said.
In 2020, the other brands made about $3billion in net revenue for Pepsico with profit margins were below the other groups.
This deal is expected to close in 2021 or early 2022.
