This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pepsi Pays $3.8B for Wimm-Bill-Dann

Updated from 6:11 a.m. EST with confirmation of the deal

PURCHASE, New York ( TheStreet) -- PepsiCo (PEP - Get Report) agreed to acquire 66% of Russian dairy products and fruit-juice maker OAO Wimm-Bill-Dann (WBD) for $3.8 billion.

In a press release Thursday, Pepsi said it will offer to acquire the remaining shares once the acquisition is completed.

Wimm-Bill-Dann is a leader in Russia's dairy market. It also is No. 3 in juice and No. 1 in baby food, according to the Wall Street Journal.

Pepsi said the acquisition makes it the largest food-and-beverage business in Russia. The deal also will raise Pepsi's annual global revenue from nutritious and functional foods to almost $13 billion frm about $10 billion.

Pepsi said the $3.8 it's paying to buy the stake in Wimm-Bill-Dann implies a total enterprise value of about $5.4 billion.

Pepsi is paying $33 per ADR share, a premium of 32% to the 30-day average trading price of Wimm-Bill-Dann's ADR shares.

Will-Bill-Dann's ADRs closed Wednesday at $24.50.

Pepsi said it expects the transaction to be modestly accretive to earnings in the first year, excluding one-time transaction costs and fees.

-- Written by Joseph Woelfel

>To contact the writer of this article, click here: Joseph Woelfel

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
PEP $95.09 -0.55%
AAPL $124.25 -0.14%
FB $81.66 -0.67%
GOOG $542.56 -0.99%
TSLA $187.59 -0.63%


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs