PepsiCo will sell Tropicana, Naked and other juice brands to French private equity firm PAI Partners for about $3.3 billion, seeking to strengthen its balance sheet and focus on healthier snacks and snacks.

According to a statement on Tuesday, the US beverage giant will retain a 39 per cent non-controlling stake in the new holding company of these brands and give PAI an irrevocable option to acquire certain European juice businesses.

PepsiCo said it plans to use the proceeds to strengthen its balance sheet and invest it in a wider range of businesses.

Paris-based PAI is a senior investor in food and beverages and the world's largest independent bottled beverage Refresco investor. The proposed joint venture between PAI and PepsiCo is similar to its combination of Rendr ice cream business and Nestl éA joint venture formed when most of the ice cream division merged to create Froneri.

"the joint venture with PAI allows us to realize significant upfront value while providing these popular brands with the attention and resources needed to drive additional long-term growth," Ramon Laguarta, chairman and chief executive of PepsiCo, said in a statement.

"in addition, it will liberate us to focus on existing diversified product lines, including expanding the mix of healthier snacks, zero-calorie drinks and health-conscious and environmentally friendly products such as SodaStream," he said.

Pepsi's juice business made a net profit of about $3 billion in 2020. Hugh Johnston, the chief financial officer, said in an interview that the profit margin of the business was below Pepsi's average, so the deal would "gradually boost profit margins."