© Vigor.
PepsiCo is reportedly in talks with J&F Investimentos to acquire Brazilian dairy company Vigor.
The value of the acquisition could be as high as BRL 6 billion ($1.91 billion), according to Valor Econômico, the country’s biggest financial newspaper.
Valor reported that J&F – the investment holding company of Brazil’s Bautista family – ‘remains interested in selling the operation’ and has held discussions with other potential buyers besides PepsiCo. It’s believed to be the soft drinks giant’s second bid for the company.
A spokesperson for PepsiCo told FoodBev that it ‘does not comment on rumours or speculation’.
Vigor produces a range of yogurts, yogurt drinks, spreads and cream cheese. Based in São Paulo state, it operates seven manufacturing facilities across four different Brazilian states: São Paulo, Minas Gerais, Paraná and Goiás.
The company turned over BRL 118.2 million ($37.5 million) in 2015, and had net income of BRL 10.1 million ($3.2 million).
In numbers: PepsiCo’s interest in Brazil
The deal would boost PepsiCo’s performance in the Brazilian dairy sector, alongside its Toddy chocolate milkshake. In December 2015, Coca-Cola’s partner in the country, Leão Alimentos e Bebidas, reached an agreement to acquire dairy company Verde Campo.
In 2013, Vigor purchased a 50% stake in dairy cooperative Itambé and invested BRL 410 million ($130 million) in expanding the company’s production capacity. Vigor said that the transaction ‘helped accelerate its regional expansion process’, with Itambé processing 5 million litres of milk a day.
UPDATE: Additional press reports appear to confirm PepsiCo’s bid for Vigor, but say that J&F Investimentos will now drop plans to sell the business.
© FoodBev Media Ltd 2024