PepsiCo sells Tropicana and Naked Juice for US $3.3 billion

PepsiCo has announced the sale of Tropicana, Naked and other North American juice brands to French private equity firm Pai Partners.

The $3.3 billion deal is part of the group’s efforts to move away from high-sugar drinks in favour of zero-calorie beverages and healthy snacks, growth segments in which the group intends to concentrate its investments.

The agreement involves the creation of a new joint venture in which the group will retain a 39% share and will have exclusive rights for the distribution of the brands in the United States, particularly in the food service segment.

PepsiCo acquired Tropicana in 1998 for about US $3.3 billion and Naked Juice almost ten years later for US $150 million.

The transaction is expected to close in 2021 or early 2022.

Image credits: PepsiCo