Get ready to do a spit take with your orange juice.
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.
“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.
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.