Somers, N.Y., Jun. 8 - The Pepsi Bottling Group, Inc. today announced that it has signed a letter of intent to acquire Ab-Tex Beverage, Ltd., the fifth in a series of recent acquisitions to expand PBG's U.S. territory and enhance its ability to meet customer needs. Financial terms were not disclosed.
With nearly 450 employees, Ab-Tex bottles, packages and distributes several leading beverage brands, including Pepsi-Cola, Dr Pepper, Mountain Dew, 7UP, and Sunkist. Headquartered in Abilene, Texas, Ab-Tex operates in 125 counties across central Texas and has been owned and operated by the Massey family for over 70 years.
“PBG has a great track record of creating shareholder value through acquisitions of well-run independent bottlers, as they provide access to regional growth markets and enhance both the efficiency and effectiveness of our go-to-market system. As the pace of bottler consolidation in the U.S. accelerates, we will continue to capitalize on opportunities to expand our business,” said PBG Chairman and Chief Executive Officer Eric Foss.
“The Massey family and their outstanding employees have played important roles in the success of the Pepsi and Dr Pepper systems in Texas for many years,” Foss continued. “Adding Ab-Tex to the PBG family will further strengthen our business and position us well for long-term success.”
Ab-Tex will be the newest addition to a portfolio of independent regional bottlers that PBG has acquired since the beginning of 2008. Together, these bottlers generate over $300 million in annual revenue. Previous transactions include:
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A letter of intent to acquire Massachusetts-based Pepsi-Cola Bottlers for the Merrimack Valley, Inc., which PBG announced last month.
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The acquisition of Better Beverages, Ltd., a Pepsi-Cola and Dr Pepper franchised bottler that serves portions of central Texas.
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The acquisition of Lane Affiliated Companies, the eighth largest Pepsi bottler in the U.S. with operations in Colorado, Arizona and New Mexico.
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The acquisition of Pepsi-Cola Batavia Bottling Corp., serving parts of upstate New York.
The Ab-Tex acquisition is expected to be completed during the third quarter of 2009.