(Reuters) -PepsiCo is in advanced talks to buy tortilla chip maker Siete Foods for more than $1 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter.
Texas-based Siete Foods is owned by the Garza family and managed by all seven members.
A deal for closely held Siete Foods could be announced soon unless talks fail, the report said.
The sales process for the company was competitive, with the company attracting takeover interest from private equity firms and other food companies, some people familiar with the matter told the Wall Street Journal.
PepsiCo declined to comment.
The deal comes amid robust deals in the U.S. packaged food sector as companies try to scale up their operations at a time when inflation-weary consumers are cutting back on spending and shifting purchases to private label brands.
Demand for PepsiCo’s snacks and soft drinks, especially in the United States, its largest market, has been hit by a series of price increases and competition from private label brands.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shailesh Kuberand Devika Syamnath)
