PepsiCo is in advanced talks to acquire tortilla-chip maker Siete Foods for more than $1 billion (€900 million), the Wall Street Journal reported, citing people familiar with the matter.
Texas-based Siete Foods is owned by the Garza family and operated by all seven of its members.
A deal for the closely held Siete Foods could be announced soon unless the talks fall apart, the report said.
The sale process for the business has been competitive, with the company drawing takeover interest from private-equity firms and other food companies, some of the people familiar with the matter told the Wall Street Journal.
PepsiCo declined to comment.
Robust Dealmaking
The deal comes in the midst of robust dealmaking in the US packaged food sector as companies seek to scale their businesses at a time when inflation-weary consumers cut back spending and shift their purchases to private-label brands.
Demand for PepsiCo's snacks and soda, mainly in the United States, its largest market, has taken a hit from a series of price hikes and competition from private-label brands.
Recently, General Mills announced plans to sell its North America yoghurt business to French dairy firms Groupe Lactalis and Sodiaal in a $2.1 billion (€1.9 billion) deal.
The North American Yogurt business contributed about $1.5 billion (€1.4 billion) to General Mills’ fiscal 2024 net sales.
Elsewhere, confectionery giant Mars acquired Cheez-It and Pringles maker Kellanova in a nearly $36 billion (€32.7 billion) deal, making it the biggest buyout in the packaged food industry.
The deal is a bet on consumers continuing to indulge in branded snacks, and comes as packaged food companies face stalling growth after years of price hikes to cover sky-rocketing inflation.
