PepsiCo Serves Up an Increased Presence in Africa With Pioneer Foods Deal; Shares Fairly Valued
Wide-moat PepsiCo announced July 19 it will acquire South African-based Pioneer Foods, a manufacturer and distributor of food and beverage fare (including cereal and juices), in a $1.7 billion deal expected to close by the end of March 2020. The price tag strikes us as fair, at around 1.1 times trailing-12 months sales and 12 times adjusted EBITDA (based on PitchBook data).We think Pepsi maintains adequate fund capacity, with more than $10 billion in cash and a debt/adjusted EBITDA ratio of 2.6...
PepsiCo is a food and beverage company. The company's segments include: Frito-Lay North America, which includes food and snack businesses in the United States and Canada; Quaker Foods North America, which includes cereal, rice, pasta and other food businesses in the United States and Canada; PepsiCo Beverages North America, which includes beverage businesses in the United States and Canada; Latin America, which includes beverage, food and snack businesses in Latin America; Europe, which includes beverage, food and snack businesses in Europe; and Africa, Middle East and South Asia, which includes beverage, food and snack businesses in Africa, the Middle East and South Asia.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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