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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Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.