SIETE FOODS acquired by PEPSICO

PepsiCo acquired Garza Food Ventures, trading as Siete Foods, from the founding Garza family and its investors, under a definitive agreement announced on 1 October 2024 and completed on 17 January 2025 after regulatory approvals, at an enterprise value of $1.2bn, an EV/revenue multiple of 2.4x on revenue of $500m. Founded in 2014 by seven members of the Garza family, the company had started by selling almond-flour tortillas to local health food stores, from a recipe developed by Veronica Garza for relatives unable to eat grain. It raised one million dollars of angel funding in 2015, then 90 million from the growth equity firm Stripes in 2018, and its products were sold in around 37,000 stores by the time of the deal, among them Whole Foods, Walmart, Target, Kroger and CVS. It was PepsiCo’s first food acquisition in roughly five years, and the latest in a series through which the group had been shifting its portfolio towards products with simpler ingredients, after PopCorners, Bare, Stacy’s Pita Chips and Sabra. Siete brought a range built for consumers avoiding grain, gluten or dairy, a segment its existing snack brands did not address, alongside a Mexican-American positioning that widened its multicultural portfolio. PepsiCo intended to preserve the brand’s character while extending its distribution through its own retail and foodservice network. Centerview Partners acted as lead financial adviser to PepsiCo, with Citi alongside and Gibson Dunn & Crutcher as legal counsel, while Lazard advised Siete Foods, with Weil, Gotshal & Manges and Armbrust & Brown as legal counsel.

By taking control of Siete Foods, Pepsico continues its expansion strategy. Previously, the group had completed 3 acquisitions, including Cytosport in 2019.