Pioneer Foods, a subsidiary of PepsiCo, has announced its intention to fully acquire Future Life Health Products, a South African nutritional cereal maker, by purchasing the remaining 50% stake.
PepsiCo South Africa has disclosed that the transaction is expected to be finalized during the first week of July, pending the fulfillment of a few remaining administrative conditions. The company has stated that these conditions are standard for a transaction of this kind.
In 2015, Pioneer Foods purchased a 50% stake in Future Life Health, and now they are preparing to acquire the remaining 50% stake held by Future Life founder Paul Saad. The specific amount involved in the transaction has not been publicly disclosed.
Future Life, established in 2007, is best known for its flagship product called Future Life Smart Food. This nutritionally balanced and scientifically formulated convenient food contains Moducare and was developed with the aim of providing a healthy and convenient dietary option.
Moducare, as described by PepsiCo, is a daily immune supplement created using a patented blend of plant sterols and sterolins. Future Life, which initially focused on its flagship product, Future Life Smart Food, has expanded its offerings to include a variety of cereals and breakfast bars.
Riaan Heyl, the CEO of PepsiCo South Africa, said, “Future Life is an innovative brand within the cereals market, and we believe its product basket will complement our current portfolio. Upon closing of the transaction, we look forward to welcoming the Future Life employees into PepsiCo.
“This will also mean that qualifying employees will be entitled to participate in our employee share ownership scheme, the Bašumi Trust”, he added.
PepsiCo completed the acquisition of Pioneer Foods in 2020, following approval from a UK competition authority. This came after PepsiCo’s bid to purchase Pioneer Foods, which was valued at approximately $1.7 billion at the time, in July 2019. The acquisition allowed PepsiCo, the owner of brands such as Frito-Lay and Quaker, to expand its presence in the market.
