Karlovarské minerální vody, a.s. agreed to acquire operations in the Czech Republic, Slovakia and Hungary of PepsiCo, Inc. from Pepsico, Inc..
January 22, 2018
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Karlovarské minerální vody, a.s. agreed to acquire operations in the Czech Republic, Slovakia and Hungary of PepsiCo, Inc. from Pepsico, Inc. (NasdaqGS:PEP) on January 22, 2018. Under the transaction, Karlovarské will acquire a total of 900 employees and two production plants. Karlovarské will take over the production of brands Pepsi, Mirinda, 7Up, Gatorade, Mountain Dew, Lipton, Toma, Lay's and Cheetos. The acquisition will be financed by Ceska sporitelna and CSOB of the Czech Republic who are to provide loan for the deal. The acquired operations reported annual turnover of CZK 4.2 billion. Operations in the Czech Republic of PepsiCo, Inc. reported a profit of CZK 0.654 million in the year ending in 2017. The transaction is subject to approval by antimonopoly authorities and is expected to close in first half of 2018. As on May 31, 2018, the Hungarian antimonopoly office has issued permit to take over assets of PepsiCo in Hungary and the approval for takeover in Czech Republic and Slovakia are still underway, and the transaction is expected to be completed by end of the first half of 2018. As of June 7, 2018, Czech antimonopoly office UOHS extended its review period from 30 days to five months. As on August 20, 2018, Slovak antimonopoly office approved the transaction. As per announcement made on November 1, 2018, Czech antimonopoly office UOHS has approved transaction. Kocian Solc Balastik acted as the legal advisor for Karlovarské minerální vody, a.s. Iván Sólyom, Richard Lock, and Adrienn Mándoki of Lakatos, Köves and Partners acted as legal advisors to Karlovarské minerální vody, a.s.
PepsiCo, Inc. is one of the worldwide leaders in producing non-alcoholic beverages and snacks. Net sales break down by area of activity as follows:
- North America (60.8%): sale of beverages (49.7% of net sales; sodas, concentrated juices, water, tea and coffee-based beverages; Aquafina, Diet Mountain Dew, Diet Pepsi, Gatorade, Gatorade Zero, Mountain Dew, Pepsi, Propel brands, etc.), snacks (44.7%; chips, tortillas and pretzels; Lay's, Doritos, Tostitos, Cheetos, Fritos, Ruffles, etc.), and cereals (5.6%; ready-to-eat cereals, rice, wheat, etc.);
- Europe (14.5%): sale of snacks (Cheetos, Chipita, Doritos, Lay's, Ruffles and Walkers brands) and beverages (7UP, Diet Pepsi, Lubimy Sad, Mirinda, Pepsi and Pepsi Max);
- Latin America (12.7%): sales of snacks (Cheetos, Doritos, Emperador, Lay's, Mabel, Marias Gamesa, Ruffles, Sabritas, Saladitas and Tostitos brands) and beverages (7UP, Gatorade, H2oh!, Manzanita Sol, Mirinda, Pepsi, Pepsi Black, San Carlos and Toddy)
- Asia/Pacific/Australia/New Zealand (6.7%): sale of snacks (BaiCaoWei, Cheetos, Doritos, Lay's and Smith's brands), beverages and syrups (7UP, Aquafina, Mirinda, Mountain Dew, Pepsi and Sting);
- Africa/Middle East/South Asia (5.3%): sale of snacks (Chipsy, Doritos, Kurkure, Lay's, Sasko, Spekko and White Star brands) and beverages (7UP, Aquafina, Mirinda, Mountain Dew and Pepsi).
Net sales are distributed geographically as follows: the United States (57%), Mexico (7.7%), Canada (4.1%), Russia (3.9%), China (3%), the United Kingdom (2.1%), Brazil (1.9%), South Africa (1.9%) and other (18.4%).
PEPSICO, INC. 
