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PepsiCo to eat up Pipers
Posted on Wednesday, 07 November 2018 07:52
PepsiCo, in a move to boost its existing snack portfolio, is buying UK-based potato crisps brand Pipers for an undisclosed sum.
The acquisition, which will increase the target’s UK growth, remains subject to regulatory approval and clearance from the Competition and Markets Authority, and is expected to complete in early 2019.
Richard Naish, head of the food and drink team at Walker Morris, who are advising Piper’s shareholders, said: “Pipers Crisps is a well-established, quality brand in the crisp market and an attractive proposition for PepsiCo.
“The acquisition will help to build on that success and continue the development and export of the product.”
Formed in 2004, Pipers specialises in making gourmet crisps sourced from local potatoes, featuring a variety of flavours such as Wissington tomato, Karnataka black pepper, Biggleswade sweet chilli, and Anglesey sea salt, among others.
The deal will expand PepsiCo’s product line and establish its presence in the UK out-of-home environment, which includes pubs, restaurants, cafes and hotels across the country, as well as internationally.
As a result of the purchase, Pipers will feature alongside the buyer’s existing high profile crisp brands, Lays, Doritos, Walkers, Fritos, and Ruffles.
The purchase represents another addition to PepsiCo’s growing snack portfolio, having bought US-based Health Warrior, a maker of nutritional bars and plant-based products, for an undisclosed sum last month.
Back in May, the buyer also agreed to acquire Bare Snacks, a California-based business that sells vegetable and fruit chips.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 48 deals targeting snack food manufacturers announced worldwide since the beginning of 2018.
The Hershey Company, in the largest of these, agreed to buy US-based Robert’s American Gourmet Food for USD 420.00 million.
Other companies targeted in this sector include HS Food, Romaine Empire, Speciality Foods, and Avadh Snacks.
© Zephus Ltd