A born and raised Austin company is going big time. PepsiCo announced Tuesday that it will purchase Siete Foods for $1.2 billion.
In a statement Tuesday, PepsiCo said the acquisition will complement the brand’s portfolio with the addition of an “authentic, Mexican-American brand,” while also growing the company’s roster of healthier food offerings.
“The Garza family has built a very special brand. Their passion for making and sharing food shines through in every Siete product, and that’s a passion we share at PepsiCo,” said Ramon Laguarta, chairman and CEO of PepsiCo. “PepsiCo believes in the spirit and authenticity of the Siete brand, and we’re excited to carry on the legacy created by the Garza family. We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete.”
Miguel Garza, Siete Foods CEO and co-founder, said the brand is excited for the change and for how his family’s brand will fit within the offerings PepsiCo already has.
“We hope this next chapter for Siete serves as inspiration for other Latino businesses, showing that it’s possible to build a thriving brand that honors our heritage and celebrates our culture,” he said.
Who is Austin’s Siete Foods?
Siete Foods, which has been on a hot streak in recent years, was founded in Austin in 2014 by Veronica Garza, a University of Texas graduate. The idea for the company came about after Garza was diagnosed with autoimmune diseases while in high school and college.
In response, Garza and her family altered typical Mexican recipes to accommodate her health needs. According to the brand’s website, the altered recipes were so successful the family decided to create Siete Foods and take the new products to the masses.
Since then, the brand has steadily grown in popularity and can be found in abundance in popular grocery stores across the country.
What are the details of the purchase
Centerview Partners LLC acted as lead financial adviser to PepsiCo. Citi also served as financial adviser. Gibson Dunn & Crutcher LLP is acting as legal adviser to PepsiCo. Lazard is acting as financial adviser to Siete and Weil, Gotshal & Manges LLP. Armbrust & Brown PLLC is also acting as legal adviser to Siete.
Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. To share additional tips or insights with Salgado, email Bsalgado@gannett.com.
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