PepsiCo Inc. (NASDAQ: PEP) made a big move in China over the weekend that was unrelated to the coronavirus. The food and beverage giant announced Sunday that it had agreed to buy the Chinese snack brand Be & Cheery from Haoxiangni Health Food.

Pepsi’s management has said that the acquisition was an important step in its goal to become China’s leading consumer-focused food and beverage company. Note that Be & Cheery sells snacks, including nuts and dried fruit, on Chinese e-commerce platforms.

Under the terms of the deal, Pepsi is paying roughly $705 million for Be & Cheery. The transaction is subject to a Haoziangni shareholder vote and is subject to certain regulatory approvals and customary closing conditions.

Be & Cheery was founded in 2003 and is one of the largest online snack companies in China. It reported revenues of about $711 million for the 2019 full year.

Ram Krishnan, CEO of PepsiCo Greater China, commented:

Be & Cheery adds direct-to-consumer capability, positioning us to capitalize on continued growth in e-commerce, and a local brand that is able to stretch across a broad portfolio of products, through both online and offline channels.

PepsiCo stock closed Friday at $145.85, in a 52-week range of $114.21 to $147.20. The consensus price target is $146.44. Pepsi shares were largely unmoved Monday morning, while the broad markets turned south.

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