PepsiCo Inc. has entered into a definitive agreement to acquire Austin-based Siete Foods for $1.2 billion. Pending customary closing conditions, including regulatory approval, the deal is expected to close in the first half of 2025.
Siete Foods, legally named Garza Food Ventures LLC, was founded in 2014 and quickly rose to prominence with its gluten-free tortillas. The family-run company has expanded its product line to offer a variety of grain-free, gluten-free, and dairy-free food options, including tortilla chips, potato chips, cookies, and seasonings. Siete products are available on over 40,000 retail shelves across North America, including major retailers like Costco, H-E-B, and Whole Foods.
While the potential impact on Siete’s headquarters remains unclear, the company is poised for expansion, according to CEO and co-founder Miguel Garza. “Siete was created ten years ago to make heritage-inspired, Mexican-American food more widely available,” Garza said in a statement. “Now we’re excited to embrace a new era with PepsiCo and bring our inclusive, better-for-you products to more people. We hope this next chapter for Siete serves as inspiration for other Latino businesses, showing that it’s possible to build a thriving brand that honors our heritage and celebrates our culture.”
In preparation for future growth, Siete subleased more than 50,000 square feet of space at Expo 7 in Southeast Austin earlier this year. The company also added actress and businesswoman Eva Longoria as an investor and strategic adviser.
Siete executives are not conducting interviews during PepsiCo’s quiet period, and both companies have declined to comment until PepsiCo’s earnings update on October 8.
PepsiCo’s acquisition of Siete complements its portfolio by adding an authentic Mexican-American brand and expanding its range of better-for-you food options. Ramon Laguarta, chairman and CEO of PepsiCo, praised Siete’s story, stating, “The Garza family has built a very special brand. Their passion for making and sharing food shines through in every Siete product, and that’s a passion we share at PepsiCo. We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete.”
The acquisition follows a wave of recent deals involving Austin-based companies. Freebirds World Burrito was purchased by Dallas-based Sun Holdings LLC in August, and Darden Restaurants Inc., parent company of Olive Garden and LongHorn Steakhouse, is set to acquire Chuy’s Holdings Inc. for $605 million, with the deal expected to close by November.
