December 9, 2009 (FinancialWire) — PepsiCo (NYSE: PEP) said it has reached an agreement with Dr Pepper Snapple Group, Inc. (NYSE: DPS) to manufacture and distribute certain DPS products following completion of PepsiCo’s acquisition of its two anchor bottlers, The Pepsi Bottling Group, Inc. (NYSE: PBG) and PepsiAmericas, Inc. (NYSE: PAS).

Under the terms of the agreement, DPS will receive an upfront payment of $900 million payable upon closing of the acquisitions. In exchange, PepsiCo will be entitled to manufacture and distribute Dr Pepper and certain other DPS products in the territories where they are currently distributed by PBG and PAS.

The agreement between PepsiCo and DPS, which will replace existing agreements PBG and PAS have with DPS, will have an initial term of 20 years, with automatic 20 year renewals thereafter.

Purchase, New York-based PepsiCo has portfolio of food and beverage brands, including Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade.

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