PepsiCo (NYSE: PEP) announced today that the dairy and juice joint venture it formed earlier this year with Saudi-based dairy company Almarai has made its first acquisition.
The joint venture, International Dairy and Juice Limited (IDJ), acquired 75% of leading Jordanian dairy producer Teeba Investment for Developed Food Processing Company (Teeba). The Teeba stake had been owned by Almarai, which acquired it in January 2009 and is transferring it to the joint venture at cost.
Teeba is one of the leading players in the fresh dairy sector in Jordan, with its own dairy farm, and a producer and distributor for a wide variety of other dairy and juice products.
"This is an important step forward in our ongoing effort to build a diversified global portfolio of foods and beverages, addressing consumers' need for nutrition as well as fun and refreshment," said Michael White, PepsiCo Vice Chairman and PepsiCo International CEO.
IDJ is held 52% by PepsiCo and 48% by Almarai. It was formed to focus on opportunities in Southeast Asia, Africa and the Middle East, excluding the Gulf Cooperation Council countries, where Almarai already has a very strong presence.
IDJ will identify and develop growth opportunities for a range of high-quality dairy and juice products. The venture will draw on the two partners' complementary brands and capabilities -- benefiting from Almarai's in-depth knowledge of the dairy industry and PepsiCo's marketing capabilities and experience as a world leader in juice.