Shares of PepsiCo Inc. PEP, -0.40% rose 1.0% in premarket trading Tuesday, after the beverage and snacks company announced an agreement to sell Tropicana, Naked and other juice brands across North America for $3.3 billion in cash to PAI Partners. The deal includes options to sell certain juice businesses in Europe. PepsiCo said it will retain a 39% interest in a newly formed joint venture, and will retain exclusive U.S. distribution rights of the brands. “This joint venture with PAI enables us to realize significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands,” said PepsiCo Chief Executive Ramon Laguarta. “In addition, it will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream which are focused on being better for people and the planet.” PepsiCo said the juice businesses in the deal delivered about $3 billion in revenue in 2020, while operating profit margins were below overall operating margins. The stock has gained 5.4% year to date through Monday, while the S&P 500 SPX, -0.18% has advanced 16.8%.
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