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PepsiCo in $406M deal
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November 17, 1997: 2:39 p.m. ET
Buys salty snacks units from United Biscuits and sells biscuit business
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NEW YORK (CNNfn) - PepsiCo Inc. will buy snack businesses and sell a biscuit-making unit to United Biscuits Holdings Plc in a deal valued at $406 million, the companies said Monday.
As part of the deal, Frito-Lay Co., a division of PepsiCo, will acquire Smith's Snackfood Co. in Australia; a chip plant and the Crik Crok snack brand, both in Belgium; the Nibbit snack brand in Holland; and the Croky potato chips brand in France.
Frito-Lay, in return, will sell its French biscuit company, Biscuiterie Nantaise, to United Biscuits for $30 million.
United Biscuits had dominated the Australian snack market after it acquired Smiths Snackfood in 1993. But analysts questioned whether it could hang onto its position in the face of mounting competition from PepsiCo.
PepsiCo, (PEP) which last month spun off its restaurant business to concentrate on its soft drink and snack food lines, was unlikely to leave a market the size of Australia. 
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