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PepsiCo announced Tuesday that it has agreed to acquire Mexican-American food brand Siete Foods for $1.2 billion. The acquisition will enhance PepsiCo's portfolio by adding a prominent "better-for-you" brand known for its nontraditional Mexican and Mexican-American food products. The deal, which is expected to close in the first half of 2025, is being guided by Gibson Dunn & Crutcher LLP for PepsiCo, while Siete is advised by Weil Gotshal & Manges LLP and Armbrust & Brown PLLC.

PepsiCo to Buy Siete : Expanding PepsiCo’s Authentic Offerings

In a statement, PepsiCo Chairman and CEO Ramon Laguarta emphasized the significance of Siete Foods' cultural authenticity, stating, "The Garza family has built a very special brand. PepsiCo believes in the spirit and authenticity of the Siete brand, and we're excited to carry on the legacy created by the Garza family."

Founded in 2014 in Austin, Texas, Siete has gained a strong foothold in the U.S. market with its healthier takes on traditional Mexican foods, offering products such as tortillas, salsas, and snacks that are widely available in grocery and club stores.

A Strategic Acquisition

PepsiCo's acquisition of Siete reflects its ongoing strategy of bolstering its portfolio with health-conscious brands. The move continues the food and beverage giant's long history of growth through mergers and acquisitions. Over the past decade, PepsiCo has added companies like Rockstar Energy, SodaStream, and Bare Snacks to its portfolio, which generated over $91 billion in net revenues in 2023.

Miguel Garza, Siete's CEO and co-founder, expressed optimism about the future, stating, "We hope this next chapter for Siete serves as inspiration for other Latino businesses, showing that it's possible to build a thriving brand that honors our heritage and celebrates our culture."

Industry and Antitrust Context

While the deal may not reach the scale of recent food industry megadeals, such as Mars' $36 billion acquisition of Kellanova, PepsiCo's acquisition of Siete follows a trend of consolidation in the food sector. Corporate food mergers have increasingly drawn attention from regulators, but the Siete deal is not expected to face significant antitrust scrutiny.

PepsiCo to Buy Siete : Financial and Legal Advisors

Centerview Partners LLC is serving as the lead financial adviser to PepsiCo, with Citi also providing financial advice. Siete is being advised by Lazard. On the legal side, Weil Gotshal & Manges LLP partners Gareth Clark and Karen Ballack are representing Siete, while additional counsel details were not immediately available.

The transaction is subject to customary closing conditions and regulatory approvals, with completion anticipated in the first half of 2025.