Soft drinks and snacks giant PepsiCo has announced plans to acquire Siete Foods, a Mexican-American food company, for $1.2 billion as it seeks to expand its better-for-you and multicultural food offerings.

The acquisition will add Siete's range of heritage-inspired products, including grain-free tortillas, salsas, seasonings, sauces and cookies, to PepsiCo's existing portfolio. Founded in 2014 in Austin, Texas, Siete Foods has established a presence across 40,000 retailers in the United States, including major grocery stores, club stores and organic food retailers.

Ramon Laguarta, chairman and chief executive officer of PepsiCo, praised the authenticity of the brand, stating: "The Garza family has built a very special brand. Their passion for making and sharing food shines through in every Siete product, and that's a passion we share at PepsiCo."

The deal marks PepsiCo's first major food acquisition in approximately five years, as the company continues its strategic shift towards healthier options. The maker of Lay's and Doritos generated more than $91 billion in net revenue in 2023 through its global beverage and convenient foods business.

Miguel Garza, chief executive officer and co-founder of Siete Foods, expressed optimism about the acquisition's potential impact on Latino businesses: "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 honours our heritage and celebrates our culture."

The announcement comes amid increased deal-making activity in the packaged food sector, following Mars's recent $36 billion acquisition of Kellanova, the maker of Pringles.

The transaction is subject to customary closing conditions and regulatory approval, with completion expected in the first half of 2025. Centerview Partners LLC and Citi are serving as financial advisors to PepsiCo, while Lazard is acting as financial advisor to Siete Foods.

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