- Language: English
- Published: May 2013
Risk-to-Price Commentary: PepsiCo Inc. Dec 10
- Published: December 2010
- Standard & Poors
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.
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Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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The Coca-Cola Co.,PepsiCo Inc.,Brown-Forman Corp.,Coca-Cola Enterprises Inc.,PepsiAmericas Inc.,Coca-Cola Amatil Ltd.
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