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Risk-to-Price Commentary: PepsiCo Inc. Dec 10 Product Image

Risk-to-Price Commentary: PepsiCo Inc. Dec 10

  • Published: December 2010
  • Standard & Poors

FEATURED COMPANIES

  • Brown-Forman Corp.
  • Coca-Cola Amatil Ltd.
  • PepsiAmericas Inc.
  • PepsiCo Inc.
  • The Coca-Cola Co.
  • MORE

Abstract
PepsiCo Inc. said Thursday it would pay $3.8 billion to buy a 66% interest in Russia's Wimm-Bill-Dann Dairy & Juice Co. and will offer to purchase the remaining shares in a bid to become the largest food and beverage business in Russia. PepsiCo expects the acquisition, pending approvals, to add $3 billion in revenues to $13 billion, be "modestly accretive to earnings in year one," and produce cost-savings of $100 million by 2014. PepsiCo intends to fund the purchase with cash and short-term debt to preserve "balance sheet flexibility." The soft drink and snack maker characterized Russia as "a fast-growing, strategically important market offering abundant opportunity." "While the multiple-to-EBITDA price appears rich, we think the proposed transaction will build upon...

Companies mentioned in this report are:
- The Coca-Cola Co.
- PepsiCo Inc.
- Brown-Forman Corp.
- Coca-Cola Enterprises Inc.
- PepsiAmericas Inc.
- Coca-Cola Amatil Ltd.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. READ MORE >

- The Coca-Cola Co.
- PepsiCo Inc.
- Brown-Forman Corp.
- Coca-Cola Enterprises Inc.
- PepsiAmericas Inc.
- Coca-Cola Amatil Ltd.

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