PepsiCo is to pay $3,8 billion for a 66% stake in Wimm-Bill-Dann from a group of shareholders, in a deal it said gave the Russian juice and dairy producer an enterprise value of $5,4 billion.
PepsiCo will offer to buy the remaining shares following completion of its controlling stake, in a deal that will move the US beverage company closer to building a $30 billion nutrition business by 2020.
The price of $33 per American depositary receipt represented a 32% premium to the 30-day average trading price of Wimm-Bill-Dann’s US-listed shares.
The deal will see PepsiCo, which already owns Lebedyansky, overtake Coca-Cola Co as Russia’s biggest juice maker, the spot it lost earlier this year when its US rival bought Nidan, Russia’s fourth-largest juice maker.
The deal will raise PepsiCo’s annual global revenues from nutritious and functional foods to nearly $13 billion from around $10 billion.
Wimm-Bill-Dann’s Moscow-listed shares soared 40% on news of the acquisition.
“This is an unprecedentedly high price for the Russian food market as the Russian consumer market as a whole. Wimm-Bill-Dann has been valued at a multiple of 18 times 2010 EBITDA, which suggests there is an enormous interest from western strategic investors,” Renaissance Capital analyst Natalya Zagvozdina said.