Canned: PepsiCo Sells Its Juice Brands​

By Curtley Bale​
The Story
Last week, PepsiCo announced its decision to sell its Tropicana and Naked Juice brands. The company is selling its majority stake to French private equity firm PAI for approximately $3.3bn.

What It Means For Businesses and Law Firms
PepsiCo originally bought Tropicana in 1998 for $3.3bn and Naked Juice in 2007 for $150m.

But today, PepsiCo is transitioning towards high growth businesses, including lower-calorie drinks, energy drinks (having recently bought Rockstar Energy) and more environmentally friendly products. The company is also looking to appeal to evolving tastes as consumers move away from fruity drinks (Wall Street Journal).

For PAI, the juice brands will form a steady part of the private equity firm’s portfolio. It's also well-timed. According to a managing partner from the firm, the pandemic has led more households to consume juices at home in a bid to boost their immune system (Financial Times).

Competitors throughout the market are facing similar challenges, with brands such as Coca-Cola seeking to reduce sugar within its product lines (2018 Business and Sustainability Report). Information campaigns from companies, celebrities and governments are likely to have contributed to this transition towards healthier drinks.

PepsiCo hired Gibson, Dunn & Crutcher for the corporate aspects of the deal, relying on Davis Polk & Wardell for tax and antitrust advice.

PAI turned to trusty advisers at Wilkie Farr & Gallagher for advice on private equity deals and antitrust issues, while instructing Latham & Watkins for finance and capital markets advice.

Image Credit: rblfmr/Shutterstock.com
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