The acquisition will help Tata Consumer to widen its portfolio in the F&B space.
Tata Consumer Products Ltd (TCPL) is set to acquire PepsiCo's stake in NourishCo Beverages as the FMCG company looks to expand its F&B portfolio. NourishCo is a 50:50 JV between the two companies.
According to TCPL, the company will acquire entire stake of PepsiCo in NourishCo and transfer of rights over the Gluco Plus/Gluco+ brand from PepsiCo.
The total cost of the acquisition is $3.9 million for the shares and the Gluco Plus/Gluco+ brand. The deal is expected to be completed on or before 30 June. The acquisition will help TCPL to use its resources and capabilities to grow its value-added liquid refreshment portfolio.
Sunil D'Souza, Managing Director and CEO, Tata Consumer Products, said: “This decision has been made after extensive deliberation between the JV partners and we feel this will bring in greater focus to the NourishCo Business. The liquid beverages category has exciting growth potential and this move will help us strengthen and widen our presence in it.”