It's true. PepsiCo Inc. (NYSE:PEP) and Anheuser-Busch InBev SA (NYSE:BUD) will
purchase goods and services together -- "effectively managing costs that can be reinvested back into areas that will grow their businesses." Many corporate giants have restructured their businesses to cut costs and invest in growth areas, but this agreement is pretty interesting since it's usually done by small companies.
Don't look out for any co-branding, though -- this isn't a joint venture. A team consisting of procurement experts for each company will focus on common areas of spending and negotiate purchases on behalf of both companies. Pepsi and Anheuser agreed to jointly purchase certain indirect goods and services in the U.S. and used primarily for their U.S. operations, such as IT hardware, office supplies, travel and facilities services, transportation and maintenance, repair and operating supplies.
Pepsi and Anheuser said in a statement that specific cost savings will depend on the negotiated terms for each purchase. The beverage giants combine to make one pretty big customer -- no doubt the suppliers will be battling each other for business.
Deals getting doneWhile Purchase, N.Y.'s Pepsi and St. Louis' Anheuser work on their novel deal, the two have more Corporate Dealmaker'ish activities going on.
We recently reported on the much anticipated announcement of who would lead Pepsi's new bottling unit, a result of its acquisitions of bottling giants Pepsi Bottling Group Inc. (NYSE:PBG) and PepsiAmericas Inc. (NYSE:PAS) for $7.8 billion. Eric Foss, chairman and CEO of PBG, got the job and was praised by ConsumerEdge Research LLC analyst Bill Pecoriello as being the best man to
handle the challenging integration.
At Anheuser, the company is focusing on its core business and reducing short-term debt,
recently selling Busch Entertainment Corp. to Blackstone Group LP (NYSE:BX) for $2.3 billion. In November, InBev SA and Anheuser-Busch Cos. merged, creating the world's No. 1 brewer. Its full debt load after the deal was $45 billion. -
Baz HiralalPepsiCo names Eric Foss CEO of bottling unitAB InBev, Blackstone override value gapAB InBev divestiture plan continuesFrom The Deal Pipeline (subscription required):
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