(Reuters) -PepsiCo is in advanced talks to acquire tortilla-chip maker Siete Foods for more than $1 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter.
Texas-based Siete Foods is owned by the Garza family and operated by all seven of its members.
A deal for the closely held Siete Foods could be announced soon unless the talks fall apart, the report said.
The sale process for the business has been competitive, with the company drawing takeover interest from private-equity firms and other food companies, some of the people familiar with the matter told the Wall Street Journal.
PepsiCo (NASDAQ:PEP) declined to comment.
The deal comes in the midst of robust dealmaking in the U.S. packaged food sector as companies seek to scale their businesses at a time when inflation-weary consumers cut back spending and shift their purchases to private-label brands.
Demand for PepsiCo's snacks and soda, mainly in the United States, its largest market, has taken a hit from a series of price hikes and competition from private-label brands.