Pepsi is Buying Snack Maker Bare Foods

PepsiCo announced on Friday that it will be acquiring Bare Foods Co, a baked fruit and vegetables snack maker.

PepsiCo is aiming to expand its business into the health snack arena and Bare Foods Co. could be a good fit.

The company was founded in 2001 in a family owned organic apple farm. The company sells banana and coconut snacks and its Granny Smith apple chips, to Starbucks as well as Whole Foods and other stores.

While no financial terms were disclosed, one source told CNBC that PepsiCO paid less than $200 million.

BMO Capital Markets analyst Amit Sharma, remarked, “I would be surprised if this is the only move (Pepsi) makes to broaden the choices offered to consumers.”

PepsiCO said that Bare Foods will operate independently and will report into Frito-Lay North America.

Disclaimer: We have no position in PepsiCo, Inc. (NASDAQ: PEP) and have not been compensated for this article.