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

PURCHASE, New York ( TheStreet) -- PepsiCo ( PEP) 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

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