PepsiCo (PEP) has sold off its Tropicana, Naked and other select juice brands in North America in a $3.3 billion deal with French equity firm PAI Partners.

PepsiCo will also receive a 39% stake in a newly formed joint venture with PAI and exclusive U.S. distribution rights for the juice brands.

“This joint venture with PAI enables us to realize significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands,” PepsiCo Chairman and CEO Ramon Laguarta said in a statement.

“In addition, it will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream which are focused on being better for people and the planet,” he added.

As part of the agreement, which is expected to close in late 2021 or early 2022, PAI will also have the first-right option to buy certain Pepsi-branded juice businesses in Europe.

Proceeds from the sale will go to strengthen Pepsi’s balance sheet and be invested back organically into the business, according to the beverage company.

Revenue from PepsiCo’s juice business generated about $3 billion, but fell behind the company’s overall operating margin, according to the company.

PepsiCo reported net sales of $70.37 billion in 2020, with a net revenue growth of 4.8% compared to a year earlier.

Shares of PepsiCo were trading at $156.94 as of 10:56 a.m. ET on Tuesday, up 62 cents, or 0.40%.

Pepsico Inc. (NYSE: PEP) A Pepsi logo. Photo: Reuters