(Reuters) – PepsiCo Inc will sell its controlling stake in Tropicana, Naked and other juice brands in North America to private equity firm PAI Partners for $3.3 billion, the beverage giant said on Tuesday.
The sale will allow PepsiCo to concentrate on growing its portfolio of health-focused snacks and zero-calorie beverages, Chief Executive Officer Ramon Laguarta said.
The company will retain a 39% stake in the new joint venture and have exclusive U.S. distribution rights for the brands.
PepsiCo bought Tropicana, one of the world’s most recognized juice brands in 1998 for roughly $3.3 billion and premium juice maker Naked Juice nearly a decade later for $150 million.
The juice businesses made about $3 billion in net revenue in 2020 with operating profit margins that were below PepsiCo’s overall operating margins, the company said.
(Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur and Patrick Graham)
