PepsiCo (PEP) will buy a 66% stake in Russian food and beverage company Wimm-Bill-Dann Foods for $3.8 billion.

The deal will make Pepsi the largest food and beverage company in Russia, the company said in a statement. It will also boost annual global revenues from "nutritious and functional foods" to almost $13 billion from around $10 billion today.

"Adding Wimm-Bill-Dann to PepsiCo's portfolio is financially attractive and gives us a strong, high-growth platform in the dairy category," said Indra Nooyi, CEO of PepsiCo. "It also gives us clear leadership in the food-and-beverage industry in Russia, a fast-growing, strategically important market."

The deal values Wimm-Bill-Dann at about $5.4 billion. PepsiCo will pay a price of $33 per ADR share, a premium of 32% over the 30-day average trading price.



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