PURCHASE, N.Y. — PepsiCo, Inc. has reached an agreement with Pioneer Foods Group Ltd., Johannesburg, South Africa, to acquire the company for approximately $1.7 billion. Pioneer Foods is a manufacturer of cereals, juices and other products that are sold throughout the continent.
“Pioneer Foods represents a differentiated opportunity for PepsiCo and allows us to immediately scale our business in Africa,” said Ramon L. Laguarta, chairman and chief executive officer of PepsiCo. “Pioneer Foods forms an important part of our strategy to not only expand in South Africa, but further into sub-Saharan Africa as well. Our businesses are highly complementary, and we look forward to working with the Pioneer Foods team to successfully build and implement a shared vision in the region.”
Once the acquisition is completed, PepsiCo will create a new business unit for sub-Saharan Africa called PepsiCo S.S.A. The unit will be led by Eugene Willemsen, who most recently was executive vice-president of global categories and franchise management for the company.
Pioneer Foods had sales of approximately $1.45 billion in 2018. Brands owned by the company include Sasko flour and bread products, Bokomo Weet-Bix cereals, Ceres fruit juices and Spekko rice varieties.
“Today’s announcement marks a very exciting milestone for Pioneer Foods and our people, and highlights the strength of what we have created,” said Tertius Carstens, c.e.o. of Pioneer Foods. “As part of PepsiCo, we will have greater scale to expand our leading brands, greater capital to invest in local agriculture and people, greater access to leading global capabilities and a partner committed to taking our company to even greater heights.”