PepsiCo to sell Tropicana, other juice brands to PE firm in $3.3bn deal

The food and beverage giant said on Tuesday that it will retain a 39% non-controlling interest in a newly-formed joint venture. PAI will be the majority shareholder of the transferred business, with PepsiCo retaining exclusive US distribution rights to the portfolio of brands in chilled Direct Store Delivery for small-format and foodservice channels.

PepsiCo chairman and chief executive Ramon Laguarta said: "This joint venture with PAI enables us to realise significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands.

"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."

The company expects to use the proceeds from the sale mainly to strengthen its balance sheet and to make organic investments in the business.