Pepsi Americas announces joint venture with Central America Beverage Corp.
May 18, 2009
According to Reuters, Pepsi Americas announced it would combine most of its Caribbean business with Central America Beverage Corp.''s Central American ones as part of a joint venture between the two companies. CABCORP, which had sales of $480 million last year, will control 82 percent ownership interest, while Pepsi Americas will control the remaining 18 percent as part of the deal. The joint venture will combine Pepsi Americas'' Caribbean business, excluding the Bahamas, with CABCORP''s Central American operations, including Guatemala, Honduras, El Salvador and Nicaragua. The deal, expected to likely close in the third quarter, will not materially impact its 2009 forecast for adjusted earnings, Pepsi Americas said. Last month, PepsiCo offered $6 billion to buy the remaining stakes in its two largest bottlers, Pepsi Bottling Group and Pepsi Americas, to cut costs and get more control of its distribution system. It owns about 33 percent of Pepsi Bottling and 43 percent of Pepsi Americas.