PepsiCo, Inc. ( PEP ) disclosed a deal to acquire the remaining 50% stake in Sabra Dipping Company, LLC, and PepsiCo-Strauss Fresh Dips & Spreads International GmbH for an undisclosed amount.

This acquisition will make PepsiCo ( PEP ) the sole owner of the companies behind Sabra and Obela products.

Sabra and Obela, 50/50 joint ventures between PepsiCo ( PEP ) and Strauss Group, focus on refrigerated dips and spreads.

PepsiCo ( PEP ), active in the fresh dips market for over 15 years, helped establish Sabra and Obela, with Sabra now leading the U.S. hummus market with $400 million in retail sales.

This acquisition supports PepsiCo’s goal to innovate and meet rising consumer demand for healthier options.

The transactions, pending customary closing conditions, are expected to finalize by the end of 2024.

Steven Williams, Chief Executive Officer, PepsiCo Foods North America, said, ”As we evolve our food portfolio and bring people more choices for more occasions, our aim is to meet the growing demand for positive choices and on-the-go options.”

“Nutritious, simple foods like refrigerated dips and spreads represent a space we have long desired to expand in the U.S. and Canada. We are grateful to the Strauss Group for our long and successful partnership and look forward to this next chapter for the Sabra and Obela brands, as well as the PepsiCo ( PEP ) food portfolio.”

As of September 7, PepsiCo’s cash and equivalents stood at $7.3 billion.

Price Action: PEP shares are up 0.07% at $160.46 premarket at the last check Friday.

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