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

  • ID: 2042681
  • December 2010
  • Standard & Poors
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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. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political READ MORE >

Note: Product cover images may vary from those shown
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- The Coca-Cola Co.
- PepsiCo Inc.
- Brown-Forman Corp.
- Coca-Cola Enterprises Inc.
- PepsiAmericas Inc.
- Coca-Cola Amatil Ltd.

Note: Product cover images may vary from those shown
3 of 3
Note: Product cover images may vary from those shown

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