PepsiCo Acquiring Siete Foods for $1.2 Billion
PepsiCo, Inc. announced this morning it has entered into a definitive agreement to acquire Siete Foods for $1.2 billion. The transaction is expected to close in the first half of 2025, pending regulatory approval and customary closing conditions.
Founded in 2014, Siete Foods produces a broad assortment of tortillas, salsas, seasonings, sauces, cookies, snacks and more that are sold in 40,000 grocery stores, club stores and organic food retailers nationwide. The Austin, Texas-based company had $400 million in annual retail sales in 2023, according to the Austin Business Journal.
“Siete was created 10 years ago to make heritage-inspired, Mexican-American food more widely available. Now we’re excited to embrace a new era with PepsiCo and bring our inclusive, better-for-you products to more people,” said Miguel Garza, CEO and co-founder of Siete Foods, in a press release. “We hope this next chapter for Siete serves as inspiration for other Latino businesses, showing that it’s possible to build a thriving brand that honors our heritage and celebrates our culture.”
The addition of Siete builds on PepsiCo’s better-for-you food offerings – which includes brands like Bare Foods and PopCorners – while “expanding our multicultural portfolio,” said Ramon Laguarta, chairman and CEO of PepsiCo.
“PepsiCo believes in the spirit and authenticity of the Siete brand, and we’re excited to carry on the legacy created by the Garza family,” Laguarta said in a press release.
Garza co-founded the brand a decade ago with his sister, Veronica, and their mother, Aida. Veronica Garza had adopted a grain-free diet to manage symptoms of multiple autoimmune conditions, yet she craved the culinary staples of her family’s culture. Tinkering in the kitchen led to the creation of a tortilla crafted with almond flour that quickly became a favorite among the local Hispanic community, marking the beginning of the business, which expanded with scores of products formulated with premium ingredients like avocado oil, cassava flour, ground chia seeds and coconut sugar.
In 2019, Siete closed a $90 million minority investment from Stripes Group to accelerate growth by building its team and supporting innovation and marketing efforts. The company had previously closed a smaller round of angel investment.
According to the Wall Street Journal, Siete had attracted takeover interest from private equity firms and other food companies in addition to PepsiCo.
Centerview Partners LLC acted as lead financial advisor to PepsiCo, and Citi served as financial advisor. Gibson Dunn & Crutcher LLP is acting as legal advisor to PepsiCo. Lazard is acting as financial advisor to Siete, and Weil, Gotshal & Manges LLP, as well as Armbrust & Brown, PLLC are acting as legal advisors to Siete.
Siete was unavailable for interviews at the time of publication. It is unclear whether the Garza family will remain involved with the business following the close of the transaction.
