Stock Market Watch

PepsiCo Inc. Buys Wimm-Bill-Dann

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PepsiCo Inc. (NYSE:PEP) has announced that it would acquire OAO Wimm-Bill-Dann, which is a Russian producer of fruit-juice and dairy products. The deal is likely to be worth more than $5 billion.

* PepsiCo Inc. will acquire 66 percent stake in the company.
* The stake is estimated to be worth $3.8 billion.

PepsiCo Inc. will also offer to buy the remaining shares of the company. The company is planning to raise acquired company’s revenue from current $10 billion to about $13 billion. Wimm-Bill-Dann is a major player in Russian dairy market. The company holds No.1 spot in the baby food market. According to the Wall Street Journal, the company is also No. 3 in juice business. The price offered by PepsiCo Inc. denotes a premium over the Wimm-Bill-Dann’s current share price.

The deal is Pepsi’s second major push in the Russian market. The company had earlier made a $1.4 billion deal in 2008. PepsiCo Inc. deals in foods and beverages market. The company produces and markets both carbonated and non-carbonated drinks. The company has global presence. PepsiCo Inc. was established in 1898. It is based out of Purchase, New York.


Key Financial Stats

Valuation

* Price/Earnings(TTM)16.60
* Price/Cash Flow12.20
* Price/Sales (TTM)1.96
* Price/Book5.23

Financial Strength

* Quick Ratio (MRQ)0.80
* Current Ratio (MRQ)1.00
* LT Debt to Equity (MRQ)0.93
* Total Debt to Capital (MRQ)1.22
* Return on Equity32.10

Assets

* Asset Turnover1.00
* Asset per Employee61926.11
* Inventory Turnover7.40

Per Share Data

* Earnings (TTM)3.96
* Current P/E Ratio1.00
* Cash Flow5.38
* Annual Dividend1.92
* Book Value12.55
* EBITDA17.00

Profitability

* Market Cap3.96
* Gross Margin (TTM)57.60
* Operating Margin (TTM)17.00
* Profit Margin (TTM) 12.10

Management Effectiveness

* Return on Equity (TTM)32.10%
* Return on Assets (TTM)9.60%
* Return on Investment (TTM)16.60%

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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