On July 19, 2019, PepsiCo announced its intention to acquire South Africa's Pioneer Foods Group Ltd for R110.00 per share in cash, a deal valued at approximately Ksh 175.4 billion.
The acquisition represents a 56% premium to the 30-day volume weighted average price prior to the cautionary announcement on July 15.
Pioneer Foods boasts a robust, locally relevant product portfolio that complements PepsiCo's current lineup, with strong positions in cereals, juices, and other African nutritional food staples.
As part of the deal, PepsiCo will create a new operating sector for Sub-Saharan Africa, led by Eugene Willemsen, who has extensive experience in growth markets.
The acquisition is subject to a Pioneer Foods shareholder vote, certain regulatory approvals, and other customary conditions, with closing expected by Q1 calendar year 2020.
UBS Investment Bank, J.P. Morgan, and Centerview acted as financial advisors to PepsiCo, while Bowmans and Webber Wentzel served as legal counsel to the company.
