Pepsi Bottling Group Acquires Ab-Tex

 

Pepsi Bottling Group Inc. signed a letter of intent on Monday to buy Ab-Tex Beverage Ltd., part of the large bottler’s continuing series of acquisitions, the Wall Street Journal reported.

 

The company has said it plans to pursue its own growth, rather than be acquired at the current price PespsiCo Inc. is offering.

 

In May, Pepsi Bottling rejected an offer of about $4.2 billion from PepsiCo to buy the remaining two-thirds stake in Pepsi Bottling that it doesn’t already own. Pepsi Bottling calling the offer “grossly inadequate.”

 

PepsiCo also received a rejection on its offer to buy another bottler, Minneapolis-based Pepsi Americas Inc. 

 

Eric Foss, chairman and chief executive of Pepsi Bottling told the Wall Street Journal the proposed deal for Ab-Tex would provide access to a regional growth market and increase efficiencies.

 

Privately owned Ab-Tex operates in Central Texas and bottled major beverage brands including Pepsi-Cola, Dr Pepper, Mountain Dew and 7UP.

 

The company recently bought another Texas bottler, one of four deals completed or announced since late September. The Ab-Tex deal is expected to close in the third quarter, the Wall Street Journal reported.

 

 

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