SOMERS, N.Y. (AP) -- Pepsi Bottling Group Inc. said Wednesday it will acquire the eighth largest Pepsi bottler in the United States.
It has signed a letter of intent to acquire Lane Affiliated Companies Inc., a family-owned business based in Colorado Springs, Colo., with operations covering parts of Arizona, Colorado and New Mexico.
The deal is Pepsi Bottling Group's largest acquisition of a U.S. bottler since going public in 1999, the company said.
"Once completed, the deal will strengthen our operations by expanding our footprint across contiguous territories," said Eric Foss, president and chief executive of Pepsi Bottling.
The transaction is expected to be completed in the fourth quarter of 2008. Financial terms were not disclosed.
Lane employs about 600 people. Its operations include one production facility in Colorado Springs and another in Tucson, Ariz. The company also has satellite warehouses in Yuma and Casa Grande, Ariz., and Las Cruces, N.M.
Shares of Pepsi Bottling Group rose 14 cents to $30.53 in afternoon trading.