PepsiCo has announced it is selling Tropicana, Naked, and other select juice brands across North America to PAI Partners for around $3.3 billion.

The company will retain a 39 per cent non-controlling interest in a newly formed joint venture.

According to the multinational business, collectively the juice brands delivered $3 billion in revenues last year, with operating profit margins below the company’s overall operating margin in 2020.

Paris-based PAI will be the majority shareholder of the transferred business, with PepsiCo keeping exclusive U.S. distribution rights to the portfolio of brands in its best-in-class, chilled Direct Store Delivery for small-format, and foodservice channels.

The acquisition is expected to close in late 2021 or early 2022.

"This joint venture with PAI enables us to realize significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands," said PepsiCo chairman and chief executive Ramon Laguarta. "In addition, it will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream which are focused on being better for people and the planet."

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