Updated December 19th, 2023 at 18:56 IST
Varun Beverages to enter South African market with $159 million pact
Varun Beverages, with over 30 manufacturing units in India, produces and distributes beverages under Pepsi, Mirinda, and Tropicana labels.
Varun Beverages, the Pepsi bottler in India, has announced its acquisition of South Africa-based The Beverage Company for a deal valued at $158.71 million. This strategic move marks Varun Beverages' entry into Africa's largest market.
The Beverage Company is involved in bottling and distributing non-alcoholic beverages under the PepsiCo brand in South Africa, with operations in several other African nations. The acquisition aligns with Varun Beverages' expansion plans and its position as one of PepsiCo's major franchisees outside the United States. The company also has the option to accept minority co-investment from a ‘large equity fund.’
Varun Beverages, with over 30 manufacturing units in India, produces and distributes beverages under Pepsi, Mirinda, and Tropicana labels. The completion of the deal is expected on or before July 31, 2024, subject to regulatory approvals.
Additionally, the company has signed a memorandum of understanding with the Jharkhand government to establish a manufacturing plant in the state with a capital expenditure of Rs 450 crore . This move further underscores Varun Beverages' commitment to expanding its production capabilities and presence in strategic markets. The announcement has positively impacted the company's stock, with shares closing 3.5 per cent higher on the day of the announcement.
(With Reuters inputs)
Published December 19th, 2023 at 18:50 IST