PepsiCo (NASDAQ:PEP) is selling its Tropicana and other juice brands to French private equity firm PAI Partners for $3.3 billion U.S.
PepsiCo said it is selling its juice products to simplify its products and move away from high-sugar drinks.
The company, which makes the Pepsi soft drink, bought the Tropicana orange juice maker in 1998 for roughly $3.3 billion U.S. The sale will give PepsiCo funds to develop and grow its portfolio of health-focused snacks and zero-calorie beverages.
Rival Coca-Cola Co (NYSE:KO) has also been streamlining its products over the past year, discontinuing its TAB diet soda and Coca-Cola Energy brands in the U.S. and selling its ZICO coconut water product.
PepsiCo’s juice business made about $3 billion U.S. in net revenue in 2020, with operating profit margins that were below the overall groups.
The deal is one of the many food and beverage investments PAI has made over the last few years. In 2019, Nestle SA sold its U.S. ice cream business, including brands such as Häagen-Dazs, to a joint venture backed by PAI in a deal valued at $4 billion U.S.