The Pepsi Bottling Group, Inc. (NYSE:PBG) today announced that it has signed a letter of intent to acquire Lane Affiliated Companies, Inc., the eighth largest Pepsi bottler in the United States.
Founded by Ross Lane more than 70 years ago, Lane Affiliated Companies is a family-owned business headquartered in Colorado Springs, CO. Its territories include portions of Colorado, Arizona and New Mexico. The deal is PBG’s largest acquisition of a U.S. bottler since becoming a publicly traded company in 1999.
“The Lane family has been an invaluable member of the Pepsi network for decades. Their longtime tradition of customer service and community involvement has earned their company a reputation as one of the best bottlers in the system,” said PBG President and Chief Executive Officer Eric Foss. “We’re very pleased to add the Lane operations to our business. Once completed, the deal will strengthen our operations by expanding our footprint across contiguous territories and enhancing our ability to meet the needs of our customers. We’re looking forward to welcoming Lane Affiliated’s many great employees into the PBG family.”
Lane Affiliated Companies employs approximately 600 people. Its operations include one production facility in Colorado Springs and another in Tucson, AZ. The company also has satellite warehouses in Yuma and Casa Grande, Arizona and Las Cruces, New Mexico.
The transaction is expected to be completed during the fourth quarter of 2008. Financial terms were not disclosed.
