The food company is set to acquire a diversified portfolio of aquatics and seafood products and expand its product portfolio, as well as diversify its distribution network.
Frito Lay will also invest $1.2 billion in its Aquamid and Aquamirines, a marine food production and processing company, according to a filing with the Securities and Exchange Commission.
The deal, which was first reported by The Wall Street Journal, is valued at $5 billion.
Fritos will add Aquamids, Aquamirs and Aquaramids to its existing portfolio of FritoLay products, as the company continues to expand its food offerings.
Aquamides are marketed as “soft-serve” soft drinks, and Aquamarids are marketed in soft drinks.
Fruits and vegetables will be included in the new portfolio, Frito Land said in a regulatory filing.
Fiamma is a division of PepsiCo.
Fanta is a unit of Unilever Plc.
PepsiCo has a significant presence in the U.S. grocery industry, serving as the nation’s largest food company, with a market capitalization of $21.7 trillion.
Pepsi is one of the largest suppliers of water in the world.
The company’s shares have been on a tear since Frito Land announced plans to buy Aquamidem as a standalone company in January.
Fretting about the timing of the deal, Frits parent company PepsiCo’s chief executive, Indra Nooyi, wrote on Twitter on Wednesday that the company “will continue to focus on our strategy of building a broad portfolio of products.”