USA – PepsiCo has entered into an agreement to acquire PopCorners and Rice Rounds snacks maker BFY Brands as the company seeks to expand its snacking portfolio.
BFY produces the better-for-you snacks at it manufacturing facilities in Middletown and Liberty in New York employing approximately 750 people. The company is also a contract manufacturer of popped snacks.
BFY’s primary product, PopCorners, is a high growth, better-for-you popped corn snack with a strong track record in the club and grocery segments within the US and Canada and a presence in over 40 countries and territories worldwide.
Upon closing of the acquisition, BFY will become part of PepsiCo’s Frito-Lay North America division. The transaction is subject to customary conditions and approvals, including regulatory approvals.
PepsiCo said that the addition of BFY Brands will expand Frito-Lay’s snacking portfolio which includes brands such as Doritos, Cheetos and Sun Chips and further deliver on its Winning with Purpose vision to offer consumers more positive nutritious options.
Steven Williams, CEO, PepsiCo Foods North America said: “BFY Brands offers distinctive products that deliver the great taste and ingredients consumers are looking for.
“Their production capabilities will support the growth of our existing, more-nutritious snack brands.”
Post transaction, BFY expects to continue its current expansion plans led by Paul Nardone as the chief executive officer and Dan Morgan as the chief commercial officer.
“Our goal has always been to bring innovative and delicious better-for-you snacking options to more consumers around the world, and joining the PepsiCo family will allow us to do just that,” said Nardone.
“With the support of the Permira funds, we have transformed from our manufacturing heritage to become a leader in better-for-you snacking.
“With their deep knowledge of consumer businesses, broad contacts and collaborative approach, they were the ideal partner to back our growth and we are excited to continue our successful trajectory with Frito-Lay.”
Dan Morgan added: “It’s undeniable that consumer preferences have shifted towards healthier snacking options.
“We’re thrilled to join PepsiCo and enhance Frito-Lay’s portfolio of better-for-you brands, and continue growing on a regional, national and global basis.”