Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Quaker Oats Buys Snapple For $1.7B On This Day In Market History To Block PepsiCo Takeover

Published 02/11/2022, 16:02
Updated 02/11/2022, 17:11
© Reuters.  Quaker Oats Buys Snapple For $1.7B On This Day In Market History To Block PepsiCo Takeover

© Reuters. Quaker Oats Buys Snapple For $1.7B On This Day In Market History To Block PepsiCo Takeover

Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened: On Nov. 2, 1994, Quaker Oats Co. announced a $1.7-billion buyout of Snapple Beverage Co.

Where The Market Was: The Dow Jones Industrial Average traded at 3,837.13, and the S&P 500 finished the day at 466.50.

What Else Was Going On In The World? In 1994, Tonya Harding won the national figure skating championship after rival Nancy Kerrigan was attacked by four men, including Harding’s ex-husband. Netscape Navigator was released, becoming the early market-leading web browser. Average monthly rent was $533.

Quaker’s Desperate Move: In November 1994, Quaker announced a $1.7-billion buyout bid for Snapple in a move aimed at discouraging PepsiCo (NASDAQ:PEP), Inc. (NASDAQ: PEP) from taking over Quaker. Just two days after the deal was announced, Snapple revealed in a SEC filing it will likely earn no more than 40 cents per share, well below its previous guidance of 55 cents.

Quaker went ahead with the buyout deal anyway in what is considered one of the worst buyouts in corporate history.

Less than three years later, Quaker sold Snapple to Triarc for $300 million, representing a more than 82% loss on its original investment.

To add insult to injury, PepsiCo acquired Quaker Oats anyway in December 2000 at a price of $13.4 billion.

Triarc sold Snapple to Cadbury Schweppes in September 2000 for $1.45 billion. Today, Snapple is owned by Keurig Dr Pepper (NASDAQ:KDP) Inc (NASDAQ: KDP). Quaker Oats is still owned by PepsiCo.

Photo: Like_the_Grand_Canyon, Flickr.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.