Summary
This 8-K filing from PepsiCo, Inc. (PEP) on August 8, 2001, announces the completion of its merger with The Quaker Oats Company, which officially closed on August 2, 2001. Under the terms of the merger agreement, Quaker shareholders received 2.3 shares of PepsiCo common stock for each share of Quaker common stock, plus cash for fractional shares. PepsiCo issued approximately 306 million shares of its common stock to complete this acquisition. The company has classified this transaction as tax-free and accounted for it using the pooling-of-interests method, a significant accounting treatment at the time. This strategic move integrates Quaker Oats into PepsiCo's operations, significantly expanding its portfolio, particularly in the ready-to-eat cereal and sports drink markets (Gatorade). Investors should note that supplemental pro forma financial information, unaudited, is available as an exhibit (Exhibit 99.1) to this filing, providing insight into the combined entity's potential financial standing. Detailed financial statements and pro forma information will be filed subsequently within the allowed timeframe.
Key Highlights
- 1PepsiCo, Inc. completed the acquisition of The Quaker Oats Company on August 2, 2001, making Quaker a wholly-owned subsidiary.
- 2Quaker shareholders received 2.3 shares of PepsiCo common stock per Quaker share, plus cash for fractional shares.
- 3Approximately 306 million shares of PepsiCo common stock were issued to acquire Quaker Oats.
- 4The transaction was treated as a tax-free merger.
- 5The acquisition was accounted for using the pooling-of-interests method.
- 6Unaudited supplemental pro forma financial information is provided as Exhibit 99.1.
- 7More detailed financial statements and pro forma information will be filed later.