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| Korea Investment & Securities headquarters on Yeouido, Seoul / Courtesy of Korea Investment & Securities |
By Anna J. Park
Korea Investment & Securities has joined an acquisition deal of U.S.-headquartered juice brand Tropicana, through a partnership with PAI Partners, a leading private equity firm based in Europe.
As PepsiCo agreed to sell Tropicana, the top orange juice brand in North America, to PAI Partners last August, the Paris-headquartered private equity firm has been jointly raising $4.4 billion in capital along with Korea Investment, Credit Suisse and Bank of America.
Korea Investment is the only Korea-headquartered financial company that is participating in the acquisition deal as a lead arranger. The securities firm is expected to underwrite senior and mezzanine loans for the deal. It explained that its investment banking subsidiaries in Hong Kong and New York have been cooperating closely with PAI Partners to win the chance in the deal.
"Korea Investment & Securities aims to expand the firm's global networks and synergy effects as it bolsters joint operations with our overseas branches, focusing on strengthening stellar corporate finance track records," an official from the securities firm said.
PAI Partners, which has accumulated strong experience in the global food and beverage industries, signed the deal to acquire Tropicana, Naked and other select juice brands from PepsiCo last August. These juice businesses logged an approximate $3 billion in net revenue in 2020.
"This joint venture with PAI enables us to realize significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands," PepsiCo Chairman Ramon Laguarta said last August.
"We are delighted to bring these storied beverage brands into the PAI portfolio through another partnership with a leading global food and beverage company. We believe there is great growth potential to be realized through investments in product innovation, expansion into adjacent categories and enhanced scale in branded juice drinks and other chilled categories," said Frederic Stevenin, managing partner at PAI Partners.
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