Pepsico expands Better-For-You snacks portfolio by acquisition of BFY Brands

BFY Brands, Inc. (“BFY”), the snack company which makes PopCorners® and other better-for-you snacks, and Permira, the global private equity firm, today announced that BFY has entered into a definitive agreement to be acquired by PepsiCo, Inc. (NASDAQ: PEP), from the Permira funds.

Upon closing, BFY Brands will become part of PepsiCo’s Frito-Lay North America division.

Terms of the transaction were not disclosed.

BFY is a global, better-for-you snack provider directly addressing growing consumer trends toward healthier eating through its product portfolio. In addition to manufacturing PopCorners®, the fastest growing brand among healthier salty snacks in the U.S., BFY is a contract manufacturer of better-for-you popped snacks.

Steven Williams, CEO, PepsiCo Foods North America:

“BFY Brands offers distinctive products that deliver the great taste and ingredients consumers are looking for.”

“Their production capabilities will support the growth of our existing, more-nutritious snack brands.”

The PopCorners line of snacks is available in grocery stores nationwide and includes Flex Protein Crisps and Flourish Veggie Crisps. BFY has achieved tremendous success and rapid growth under the Permira funds’ ownership, including:

• Investing heavily in research and development, including opening a new, state-of-the-art R&D facility;
• Strengthening the leadership team by hiring industry veterans Paul Nardone and Dan Morgan;
• More than doubling the size of its workforce from 350 to approximately 750 employees;
• Expanding distribution and sales of PopCorners®, which is now the fastest growing brand among better-for-you salty snacks in the U.S. and sold in over 40 countries and territories around the world;
• Launching popular new products like Flex Protein Crisps and Flourish Veggie Crisps;
• Creating a robust pipeline of new, innovative better-for-you products still to come.

Permira formed BFY Brands in 2015 as it acquired the companies Medora Snacks and Ideal Snacks, both founded by Zeke Alenic.

Paul Nardone:

“With the support of the Permira funds, we have transformed from our manufacturing heritage to become a leader in better-for-you snacking.”

“With their deep knowledge of consumer businesses, broad contacts and collaborative approach, they were the ideal partner to back our growth and we are excited to continue our successful trajectory with Frito-Lay.”

John Coyle, Partner at Permira:

“We are incredibly proud of what Paul, Dan and the 750-strong BFY team have built.”

“Since the very beginning of the Permira funds’ ownership, we set out to fulfill consumers’ demand for great tasting snacks that are also better for you.”

“Through continued investment in new product development, manufacturing and the team, the Company has lived up to its motto of Do One Better.”

“As the Company sets it sights on the next level of growth, Frito-Lay is the ideal backer.”

Dan Morgan, Chief Commercial Officer at BFY Brands:

“It’s undeniable that consumer preferences have shifted towards healthier snacking options.”

“We’re thrilled to join PepsiCo and enhance Frito-Lay’s portfolio of better-for-you brands, and continue growing on a regional, national and global basis.”

The transaction is subject to customary closing conditions, including regulatory review.