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PepsiCo to Unload Food-Distribution Unit

May 26, 1997|From Associated Press

PepsiCo Inc. is selling its food-distribution unit to AmeriServe Food Distribution as part of plans to shed its restaurant operations.

The unit, Dallas-based PFS, ships about $3.4 billion worth of food, equipment and supplies to restaurants each year.

Purchase, N.Y.-based PepsiCo said the deal, announced over the weekend, would create the nation's largest restaurant-supply company, serving 28,000 restaurants with more than $5.4 billion in sales and 5,000 employees. Terms were not disclosed.

The sale follows PepsiCo's announcement in January that it will spin off its sluggish restaurant business, which includes the Pizza Hut, KFC and Taco Bell chains, into a separate company by year's end.

AmeriServe, based in Brookfield, Wis., is owned by Holberg Industries Inc., a Greenwich, Conn.-based diversified company whose other businesses include managing parking lots.

PepsiCo's spinoff would leave it with a beverage company that ranks second after Coca-Cola Co. in the U.S. soft-drink market, and with a world leader in its Frito-Lay snack foods.

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