North Castle Partners, Greenwich, CT, has agreed to sell Azusa, CA-based Naked Juice Company to PepsiCo, Purchase, NY. This transaction marks the third investment exit for North Castle Partners, a  private equity firm focused exclusively on consumer businesses that benefit from “Healthy Living and Aging” trends, in 2006. Terms of the agreement, which is subject to government approval, were not disclosed.

With sales of more than $150 million, Naked Juice Company has a loyal and rapidly growing consumer base, which it reaches primarily through grassroots marketing and sales efforts. Its products include more than 25 all-natural, 100-percent-refrigerated juices and juice smoothies made from the best bare-naked fruits and nutritional boosts, with no added sugars or preservatives. Naked Juice is sold in supermarkets, club stores, health food stores and other specialty stores nationwide.

PepsiCo will continue Naked Juice’s successful marketing and innovation approach, while broadening its reach. With access to PepsiCo’s sales and distribution capabilities, Naked Juice can better meet the increasing consumer demand for healthy grab-and-go beverages and healthy snack alternatives.

“We are proud of the tremendous success the Naked Juice Company has achieved through our partnership with CEO Monty Sharma and the Naked Juice management team,” said Lou Marinaccio, a Managing Director of North Castle Partners. “PepsiCo is a global organization dedicated to health and wellness. That dedication coupled with extraordinary marketing and sales capabilities positions Naked Juice beautifully to continue its success in achieving the next stage of growth.”

Since 2004, under the leadership of Mr. Sharma and in partnership with North Castle, Naked Juice has executed on a series of major initiatives that upgraded the company’s branding and marketing, accelerated sales growth, and improved the company’s infrastructure and profitability. Specifically, the company re-launched the brand in 2005 to enhance Naked Juice brand recognition through better communication of the product’s raw and witty character combined with its superior product quality and taste. In addition, Naked Juice introduced several new products including Extended-Shelf-Life products in order to increase its distribution nationwide.

North Castle’s investment in Naked Juice drew on the firm’s expertise in the Nutrition arena, where it has made investments in EAS, a leading active lifestyle nutrition company that it sold to Abbott Labs in 2004, and Leiner Health Products, Inc., a market-leading provider of self-care products to food, drug and mass market retailers.

Monty Sharma, chief executive officer of Naked Juice Company, said, “We appreciate the partnership and hands-on, value-added support that North Castle has provided over the years to help Naked Juice become the great company that it is today. We’re excited that Naked Juice will be joining PepsiCo, a quality organization with world-class marketing and sales teams that will catapult us to the next level.”

“Becoming part of PepsiCo will allow us to expand our distribution and continue to demonstrate our commitment to bring the best all natural juice and juice smoothies to more consumers,” continued Mr. Sharma. “I’m looking forward to PepsiCo growing this business and to extending the availability and awareness of Naked Juice’s exceptional line up of beverages.”

“We’re delighted to add Naked Juice to our portfolio, as it strategically fits our stated plans for growth,” said Greg Shearson, president of Tropicana Products North America. “The company’s products are consistent with PepsiCo’s overall health and wellness focus and will help accelerate our efforts in providing great tasting fruit and vegetable servings to North American consumers.”

In fact, nearly all 25 Naked Juice beverages would qualify for the PepsiCo Smart Spot designation, which was created to help consumers identify the more than 250 plus PepsiCo products that contribute to a healthier lifestyle.