PepsiCo Expands Multicultural Portfolio With $1.2B Deal
PURCHASE, N.Y. — PepsiCo Inc. entered into a definitive agreement to acquire Garza Food Ventures dba Siete Foods for $1.2 billion.
Founded in 2014, Siete produces heritage-inspired tortillas, salsas, seasonings, sauces, cookies, snacks and more. The companies products can be found in grocery stores, club stores and organic food retailers primarily across the United States.
The acquisition is intended to complement PepsiCo's portfolio with the addition of an authentic, Mexican-American brand, expanding the company’s multicultural offerings.
"The Garza family has built a very special brand. Their passion for making and sharing food shines through in every Siete product, and that's a passion we share at PepsiCo," said Ramon Laguarta, PepsiCo chairman and CEO. "PepsiCo believes in the spirit and authenticity of the Siete brand, and we're excited to carry on the legacy created by the Garza family. We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete."
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The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first half of 2025. Additional terms of the acquisition were not disclosed.
"Siete was created 10 years ago to make heritage-inspired, Mexican-American food more widely available. Now we're excited to embrace a new era with PepsiCo and bring our inclusive, better-for-you products to more people," said Miguel Garza, CEO and cofounder of Siete Foods. "We hope this next chapter for Siete serves as inspiration for other Latino businesses, showing that it's possible to build a thriving brand that honors our heritage and celebrates our culture."
Centerview Partners acted as lead financial advisor to PepsiCo. Citi also served as financial advisor, while Gibson Dunn & Crutcher acted as PepsiCo’s legal advisor. Lazard acted as financial advisor, while acted Weil, Gotshal & Manges and Armbrust & Brownto acted as legal advisors to Siete.
Headquartered in Purchase, PepsiCo generated more than $86 billion in net revenue in 2022, driven by a complimentary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream.