Pepsi Hits the Acquisition Scene

PepsiCo Inc (NYSE:PEP) announced its acquisition of Brazilian cookie maker Mabel for an undisclosed amount. Brazil (NYSE:EWZ) is a key emerging market and the purchase is expected to strengthen PepsiCo Inc (NYSE:PEPmarket prospects there. Brazil is the second largest producer of cookies and crackers in the world.

Mabel’s brands such as Mabel, Elbi’s, Kelly and Skiny would join PepsiCo’s (NYSE:PEPpopular brands in Brazil such as Elma Chips, Quaker, Toddy Chocolate Powder and Toddynho Chocolate Milk. Mabel is a leading cookie manufacturer in Brazil. With five manufacturing plants strategically located throughout Brazil, it has the infrastructure to produce more than 1 million cookie packages per day, which are sold through more than 165,000 points of sale across the country. Today, the company offers more than 200 products, including crackers, cookies and wafers.

PepsiCo (NYSE:PEP) continues to build its global macro-snacks portfolio and make strategic investments that will drive our business performance and unlock long-term growth opportunities,” said John Compton, chief executive officer of PepsiCo (NYSE:PEP) Americas Foods and Global Snacks Group. “Brazil is an extremely important market for PepsiCo (NYSE:PEP) and this acquisition well positions us in a key segment in the snack category there.”

PepsiCo (NYSE:PEP), with this acquisition, will be operating 19 F&B manufacturing plants across Brazil and employing about 12000 people. The acquisition marks yet another step in its drive to grow its market in Latin America (NYSE:ILF).

Here’s how Pepsi and top competitors are trading:

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  • Diamond Foods, Inc. (NASDAQ:DMND): The shares recently traded at $38.82, down $0.92, or 2.32%. Its market capitalization is $855.94 million. They have traded in a 52-week range of $36.92 to $96.13. Volume today was 188,274 shares versus a 3-month average volume of 888,526 shares. The company’s trailing P/E is 17.49, while trailing earnings are $2.22 per share. The company pays a dividend of $0.18 per share for a dividend yield of 0.50%. About the company: Diamond Foods, Inc. is a branded food company specializing in processing, marketing and distributing culinary, snack, in-shell and ingredient nuts. Get the most recent company news and stock data here >>