MOSCOW, Aug. 28 /PRNewswire-FirstCall/ -- PepsiCo (NYSE: PEP - News) and The Pepsi Bottling Group (NYSE: PBG - News) today announced that they have completed a joint acquisition of a 75.53% stake in Russia's leading branded juice company JSC Lebedyansky (RTS: LEKZ). PepsiCo and PBG will initiate a mandatory offer for the remaining shares of Lebedyansky, in accordance with Russian law, in the near future. The acquisition does not include the company's baby food and mineral water businesses, which earlier were spun off to shareholders in a separate transaction.Lebedyansky is the world's sixth-largest juice manufacturer and the largest in Russia, with an estimated market share in Russia of around 30% and annual revenues in 2007 of approximately $800 million from its juice business.
"We're looking forward to building Lebedyansky's portfolio of strong, popular brands in one of the world's fastest-growing juice markets," said Michael White, PepsiCo International CEO and vice chairman of PepsiCo. "It's yet another way we're transforming our product lineup to include more beverages and foods that address the growing consumer interest in health and wellness."
"The combination of our strong brand portfolio, superior go-to-market capabilities, and talented workforce has enabled PBG to build a strong and growing business in Russia," said PBG President and CEO Eric Foss. "Lebedyansky has a reputation for excellence in each of these three areas as well, making them a terrific addition to the Pepsi family. Working together, PBG, PepsiCo and Lebedyansky will expand the Russian juice category in ways that benefit both customers and consumers."
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