PepsiCo, Purchase, N.Y., agreed to acquire 66 percent of leading branded food and beverage company Wimm-Bill-Dann in Russia for $3.8 billion. The transaction will establish PepsiCo as the largest food and beverage business in Russia.

In connection with the acquisition, PepsiCo will offer to acquire the remaining shares of Wimm-Bill-Dann through an offering after the completion of that acquisition at such terms as are mandated by Russian law, and PepsiCo will be able to acquire additional shares in other transaction, it said.

Wimm-Bill-Dann produces traditional and value-added dairy products and has a solid position in juice, PepsiCo said. The company has more than 16,000 employees and 38 production facilities, said Sergei Plastinin, chairman of the Wimm-Bill-Dann board of directors, in a statement.

The transaction will make PepsiCo a leader in Russia’s fast-growing dairy category and build its presence in key markets in Eastern Europe and Central Asia.

“Adding Wimm-Bill-Dann to PepsiCo’s portfolio is financially attractive and gives us a strong, high-growth platform in the dairy category,” said Indra Nooyi, PepsiCo chairwoman and chief executive officer, in a statement. “It also gives us clear leadership in the food and beverage industry in Russia, a fast-growing, strategically important market offering abundant opportunity. At the same time, Wimm-Bill-Dann’s strong, value-added dairy business immediately advances our global nutrition strategy to provide consumers around the world nutritious foods and beverages that are accessible, affordable and advantaged by science. Dairy has a huge, untapped potential to bridge snacks and beverages. We see the emerging opportunity to ‘snackify’ beverages and ‘drinkify’ snacks as the next frontier in food and beverage convenience.”

PepsiCo anticipates Wimm-Bill-Dann’s nutritious and functional foods will add $3 billion in annual global revenues for a total of $13 billion from nutritional and functional foods. This aligns with PepsiCo’s goal to build a $30 billion nutrition business by 2020, the company said. The transaction is subject to government approvals.