Disaster Deal No. 2 Throughout 1994, Quaker Oats Co. was rumored to be a takeover target. It was relatively small ($6 billion in revenue) and its diverse product lines could be easily broken up and sold piecemeal. In November, Quaker announced an agreement to buy iced-tea and fruit-drink maker Snapple Beverage Corp. for $ billion, or $14 per share. CEO William Smithburg dismissed the 10% drop in Quaker ’s stock price, arguing “ We think the healthy, good-for-you beverage categories are going to continue to grow.” The hope was that Quaker could replicate the success of its national-brand exercise drink.
