The Pepsi Bottling Group, Somers, N.Y., signed a letter of intent to acquire Ab-Tex Beverage Ltd., the company's fifth in a series of recent acquisitions to expand its U.S. territory.
Ab-Tex has nearly 450 employees, and bottles, packages and distributes products such as Pepsi-Cola, Dr Pepper, Mountain Dew, 7UP and Sunkist. It is headquartered in Abilene, Texas, and has been owned by the Massey family for more than 70 years.
PBG says the additional bottling companies it has acquired this year generate more than $300 million in annual revenue.
"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 Ab-Tex acquisition is expected to be completed during the third quarter of 2009.