Varun Beverages, the Pepsi bottler in India (VARB.NS), announced its acquisition of The Beverage Company, headquartered in South Africa. This strategic transaction, valued at 13.2 billion rupees ($158.71 million), marks Varun Beverages’ foray into the largest market in Africa.
With five manufacturing facilities situated in South Africa and additional operations in Lesotho, Eswatini, Namibia, and Botswana, The Beverage Company specializes in the bottling and distribution of non-alcoholic beverages carrying the PepsiCo brand.
Varun Beverages, a key franchisee for PepsiCo (PEP.O) beyond the United States, has disclosed its flexibility to consider a minority co-investment from a substantial equity fund, as stated in a recent filing.
Operating an extensive network, the company boasts more than 30 manufacturing units across India, actively engaged in the packaging and distribution of beverages adorned with the renowned Pepsi, Mirinda, and Tropicana labels.
Additionally, the Gurugram-based firm formalized its commitment by signing a memorandum of understanding with the Jharkhand government on Tuesday. This agreement outlines the establishment of a manufacturing plant in the state, with a designated capital expenditure of 4.5 billion rupees.