Acquisitions & Divestitures (Notes)

8 Months Ended

Sep. 08, 2018

Divestitures [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

Acquisitions & Divestitures

Acquisition of SodaStream International Ltd. (SodaStream)

On August 20, 2018, we entered into an agreement under which we will acquire all of the outstanding shares of SodaStream for $144.00 per share in cash, in a transaction valued at approximately $3.2 billion.

The acquisition has been unanimously approved by the Boards of Directors of both companies. The transaction is subject to a SodaStream shareholder vote, certain regulatory approvals and other customary conditions, and is currently expected to close by January 2019.

Refranchising in Thailand

During the second quarter of 2018, we refranchised our beverage business in Thailand by selling a controlling interest in our Thailand bottling operations to an alliance formed with Suntory Beverage & Food Asia Pte. Ltd. (Suntory). The alliance serves as the franchise bottler for both PepsiCo and Suntory. We recorded a pre-tax gain of $144 million ($126 million after-tax or $0.09 per share) in selling, general and administrative expenses in our AMENA segment in the second quarter of 2018 as a result of this transaction.

Refranchising in Czech Republic, Hungary, and Slovakia (CHS)

During the first quarter of 2018, we entered into an agreement to refranchise our entire beverage bottling operations and snack distribution operations in CHS (included within our ESSA segment). The transaction is currently expected to be completed in the fourth quarter of 2018.