PepsiAmericas Ventures to Central America
PepsiAmericas Inc. and the Central America Beverage Corporation (CABCORP) announce a strategic joint venture that is expected to provide a strong platform for growth and geographic expansion.
PepsiAmericas and CABCORP have formed a joint venture to combine PepsiAmericas' Caribbean business, excluding the Bahamas, with CABCORP's Central American operations, including Guatemala, Honduras, El Salvador and Nicaragua. As the 12th largest company in Central America and with sales of $480 million in 2008, CABCORP provides scale and local management expertise to drive growth in the combined joint venture. In addition to the PepsiCo brands, the combined business will produce and sell an expanded product portfolio across these territories. Under the agreement, CABCORP will control a majority 82 percent ownership interest, with PepsiAmericas controlling the remaining 18 percent.
"The combination of our Caribbean business with CABCORP provides the best strategic alternative to create value from this region," says Robert C. Pohlad, chairman and CEO of PepsiAmericas. "In addition to leveraging scale and expertise, we believe the formation of this joint venture will allow us to participate in the higher growth Latin American markets where CABCORP currently operates."
PepsiAmericas and CABCORP have formed a joint venture to combine PepsiAmericas' Caribbean business, excluding the Bahamas, with CABCORP's Central American operations, including Guatemala, Honduras, El Salvador and Nicaragua. As the 12th largest company in Central America and with sales of $480 million in 2008, CABCORP provides scale and local management expertise to drive growth in the combined joint venture. In addition to the PepsiCo brands, the combined business will produce and sell an expanded product portfolio across these territories. Under the agreement, CABCORP will control a majority 82 percent ownership interest, with PepsiAmericas controlling the remaining 18 percent.
"The combination of our Caribbean business with CABCORP provides the best strategic alternative to create value from this region," says Robert C. Pohlad, chairman and CEO of PepsiAmericas. "In addition to leveraging scale and expertise, we believe the formation of this joint venture will allow us to participate in the higher growth Latin American markets where CABCORP currently operates."