PepsiCo to buy stake of Wimm-Bill-Dann for $3.8B

[December 02, 2010]  PURCHASE, N.Y. (AP) -- PepsiCo Inc. is buying a majority stake in Russian company Wimm-Bill-Dann Foods for $3.8 billion.

The move will make PepsiCo the biggest Russian food and beverage company and broaden its presence in Eastern Europe and Central Asia.

Wimm-Bill-Dann is known for its dairy products, but also offers juices.

PepsiCo Chairman and CEO Indra Nooyi says that the deal will help it provide customers with nutritious foods and drinks that are affordable and accessible.

The acquisition is expected to modestly add to PepsiCo's earnings in the first year.

The soft drink and snack maker, which is based in Purchase, N.Y., has been ramping up its investments in Russia and other emerging markets to expand its business overseas. The company announced a $1 billion investment program for Russia last year.

[Associated Press]

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