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Will PepsiCo be naked once it sells Naked, Tropicana, and other juice brands?

PepsiCo announced this morning that it is selling Tropicana, Naked, and other juice brands to a French private-equity firm for $3.3 billion.

Will PepsiCo be naked once it sells Naked, Tropicana, and other juice brands?
[Photo: SteveMcsweeny/iStock]
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Get ready to do a spit take with your orange juice.

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PepsiCo has announced this morning that it’s selling Tropicana, Naked, and other juice brands to a French private-equity firm for $3.3 billion.

The deal for its North American juice calls for PepsiCo to retain a 39% non-controlling interest and exclusive U.S. distribution rights for the brands in North America. The French firm, PAI Partners, gets the European juice businesses.

According to the Purchase, N.Y.,-based company, the juices yielded about $3 billion in net revenues last year.

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“This joint venture with PAI enables us to realize significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands,” PepsiCo chairman and CEO Ramon Laguarta said in a written statement. “In addition, it will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream which are focused on being better for people and the planet.”

In addition to its namesake drink, PepsiCo owns a variety of brands including Lay’s, Doritos, Quaker Oats, Sabra, and Gatorade.

The deal is expected to be done later this year or in early 2022.

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PAI’s portfolio also includes Yoplait, Swissport, FTE Automotive, and Cerba Healthcare.

PepsiCo bought Tropicana in 1998 and Naked Juice in 2007.

Its stock was trading at $156.86, up 54 cents or 0.35%, in midmorning trading.