PepsiCo is in talks to buy Siete Foods for more than $1 billion, the WSJ reports

(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 operated by all seven of its members.

A deal for closely held Siete Foods could be announced soon unless talks break down, the report said.

The process to sell the business has been competitive, with the company attracting takeover interest from private equity firms and other food companies, people familiar with the matter told the Wall Street Journal.

PepsiCo declined to comment.

The deal comes amid solid deals in the U.S. packaged food sector as companies try to expand their businesses at a time when inflation-weary consumers are cutting back on spending and shifting purchases to private labels.

Demand for PepsiCo’s snacks and juice, mainly in the United States, its biggest market, has been hurt by a series of price increases and competition from private labels.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shailesh Kuber and Devika Syamnath)