PepsiCo Inc., the nation's No. 2 soft-drink maker, said today it has agreed to acquire No. 3 Seven-Up Co. from Philip Morris Inc. for $380 million in cash.
The merger had been rumored for several days. The companies compete with Coca-Cola Co., the industry leader. Industry analysts said the Seven-Up purchase would give PepsiCo a major inroad into the growing lemon-lime sector of the soft-drink market. Coca-Cola has about 40% of the $26-billion-a-year overall soft-drink market, while Pepsi has about 28% and Seven-Up has about 6%, industry analysts estimate.