In a show of aggression amidst a takeover attempt by PepsiCo, Pepsi Bottling has signed a letter of intent to acquire fellow bottler Ab-Tex Beverage. According to the Wall Street Journal, Pepsi Bottling, which has fended off offers from PepsiCo in recent months, has said it wants to continue its own growth plan and not sell itself to the parent company.
The potential deal for Ab-Tex, a Texas-based bottler of major soft drink brands such as Pepsi, Dr. Pepper, Mountain Dew, and 7UP, would add to a string of acquisitions made by the bottler. Pepsi Bottling successfully acquired Better Beverages on June 1, one of four deals completed or announced since last September.
PepsiCo has been making moves to acquire its bottler, in which it already owns an approximately 33 percent stake. PepsiCo’s $4.2 billion offer was rejected by Pepsi Bottling last month.
Pepsi Bottling Chairman and CEO Eric Foss said his company’s latest acquisition would lead to better efficiency as well as open up new markets for the company. The deal is expected to close in the third quarter.