The Pepsi Bottling Group to Acquire Texas Bottler

SOMERS, N.Y.--(BUSINESS WIRE)--The Pepsi Bottling Group, Inc. (NYSE:PBG) today announced that it has signed a letter of intent to acquire Ab-Tex Beverage, Ltd., the fifth in a series of recent acquisitions to expand PBG’s U.S. territory and enhance its ability to meet customer needs. Financial terms were not disclosed.

With nearly 450 employees, Ab-Tex bottles, packages and distributes several leading beverage brands, including Pepsi-Cola, Dr Pepper, Mountain Dew, 7UP, and Sunkist. Headquartered in Abilene, Texas, Ab-Tex operates in 125 counties across central Texas and has been owned and operated by the Massey family for over 70 years.

“PBG has a great track record of creating shareholder value through acquisitions of well-run independent bottlers, as they provide access to regional growth markets and enhance both the efficiency and effectiveness of our go-to-market system. As the pace of bottler consolidation in the U.S. accelerates, we will continue to capitalize on opportunities to expand our business,” said PBG Chairman and Chief Executive Officer Eric Foss.

“The Massey family and their outstanding employees have played important roles in the success of the Pepsi and Dr Pepper systems in Texas for many years,” Foss continued. “Adding Ab-Tex to the PBG family will further strengthen our business and position us well for long-term success.”

Ab-Tex will be the newest addition to a portfolio of independent regional bottlers that PBG has acquired since the beginning of 2008. Together, these bottlers generate over $300 million in annual revenue. Previous transactions include:

• A letter of intent to acquire Massachusetts-based Pepsi-Cola Bottlers for the Merrimack Valley, Inc., which PBG announced last month.
• The acquisition of Better Beverages, Ltd., a Pepsi-Cola and Dr Pepper franchised bottler that serves portions of central Texas.

• The acquisition of Lane Affiliated Companies, the eighth largest Pepsi bottler in the U.S. with operations in Colorado, Arizona and New Mexico.
• The acquisition of Pepsi-Cola Batavia Bottling Corp., serving parts of upstate New York.

The Ab-Tex acquisition is expected to be completed during the third quarter of 2009.

About PBG

The Pepsi Bottling Group, Inc. (NYSE:PBG) is the world's largest manufacturer, seller and distributor of Pepsi-Cola beverages. With approximately 67,000 employees and annual sales of nearly $14 billion, PBG has operations in the U.S., Canada, Greece, Mexico, Russia, Spain and Turkey. For more information, please visit www.pbg.com.

Forward-Looking Statement:

Statements made in this press release that relate to future performance or financial results of the Company are forward-looking statements which involve risks and uncertainties that could cause actual performance or results to materially differ. Such risks and uncertainties include, but are not limited to: the outcome of, or developments concerning, PepsiCo’s proposal to purchase all outstanding shares of the Company that it does not already own; the outcome of, and expenses associated with, any litigation related to PepsiCo’s acquisition proposal; PepsiCo’s ability to affect matters concerning us through its equity ownership of PBG, representation on our Board and approval rights under our Master Bottling Agreement; material changes in expected levels of bottler incentive payments from PepsiCo; material changes from expectations in the cost or availability of ingredients, packaging materials, other raw materials or energy; an inability to achieve strategic business plan targets; material changes in capital investment for infrastructure and an inability to achieve the expected timing for returns on cold-drink equipment and related infrastructure expenditures; an inability to successfully integrate acquired businesses or to meet projections for performance in newly acquired territories; loss of key members of management; and changes in laws and regulations governing the manufacture and sale of food and beverages, the environment, transportation, employee safety, labor and government contracts. For additional information on these and other risks and uncertainties that could cause PBG’s actual results to materially differ from those set forth herein, please see PBG’s Securities and Exchange Commission reports, including PBG’s annual report on Form 10-K for the year ended December 27, 2008. PBG undertakes no obligation to update any of the forward-looking statements set forth herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof.