PepsiCo in Talks to Acquire Siete Foods

(Reuters) – PepsiCo is in advanced talks to acquire tortilla-chip maker Siete Foods for over $1 billion, according to a report by the Wall Street Journal on Monday, citing sources familiar with the negotiations.

Texas-based Siete Foods is owned and operated by the Garza family, consisting of all seven family members. The deal could be announced soon unless negotiations fail.

The sale process has been competitive, attracting interest from private equity firms and other food companies, as reported by the Wall Street Journal.

PepsiCo (NASDAQ: PEP) declined to comment on the ongoing discussions.

This potential acquisition occurs amid a surge of dealmaking within the U.S. packaged food sector, as companies aim to expand amidst consumer spending cuts and a shift towards private-label brands.

Currently, demand for PepsiCo’s snacks and soda, particularly in the U.S., its largest market, has declined due to a series of price increases and competition from private-label brands.