PepsiCo, Inc. (NASDAQ: PEP) has announced a definitive agreement to acquire Garza Food Ventures LLC, known as Siete Foods, for $1.2 billion. This acquisition will enhance PepsiCo’s portfolio by adding Siete’s authentic Mexican-American products, further expanding its range of better-for-you food offerings.

Siete Foods, founded in 2014, specializes in a variety of heritage-inspired products including tortillas, salsas, seasonings, sauces, cookies, and snacks. These products, known for their cultural authenticity, are widely available in grocery, club, and organic food stores across the U.S.

According to Ramon Laguarta, Chairman and CEO of PepsiCo, “The Garza family has created a remarkable brand with deep passion and authenticity. At PepsiCo, we share that same dedication and look forward to building on the legacy they’ve established by introducing Siete to even more consumers.”

Miguel Garza, CEO and Co-Founder of Siete Foods, expressed enthusiasm about the acquisition: “Siete was founded to make Mexican-American, heritage-inspired food more accessible. Partnering with PepsiCo marks an exciting new chapter that will help us share our better-for-you products with a broader audience while continuing to celebrate our culture. We hope to inspire other Latino businesses through this journey.”

The transaction is expected to close in the first half of 2025, pending customary regulatory approvals. Additional details of the deal were not disclosed.

Centerview Partners LLC served as PepsiCo’s lead financial advisor, with Citi also advising on the deal. Legal counsel for PepsiCo was provided by Gibson Dunn & Crutcher LLP. Lazard served as Siete’s financial advisor, while Weil, Gotshal & Manges LLP, and Armbrust & Brown, PLLC provided legal counsel to Siete.