Food and beverage behemoth PepsiCo Inc. has agreed to buy Alberta-based sunflower- and pumpkin seed-making king Spitz International Inc. in a bid to add healthier fare to its snack lineup.

Terms of the deal weren't disclosed but PepsiCo is working toward a closing date of Dec. 1 for the privately held company, officials said.

Tom Droog, who started Spitz along with his wife, Emmy Droog, in 1982, was tight-lipped about the deal.

"The only thing I can say financially is that Stephen Harper and the tax department will be very happy and I hope they are going to send me a thank-you note," he said.

Spitz is Canada's leading sunflower seed and pumpkin seed company, with annual sales of more than $30 million.

Initially started in 1982 as Alberta Sunflower Seeds Ltd. supplying the the local bird seed market, the Droogs vaulted to the forefront of consumer snacking success in 1990 when they introduced Spitz, a line of roasted confection sunflower seed snacks for humans.

Today, Spitz product is sold in about 60,000 stores in Canada and approximately 30,000 stores in more than 40 states in the U.S.

Under the deal, Spitz will continue its Canadian operations, consisting of a production facility in Bow Island and distribution centre in Medicine Hat, and report into Frito-Lay North America. Spitz employs about 70 people.

Marc Guay, president of Frito-Lay Canada, said the sunflower seed category is a natural extension of the corporation's snacking-brand portfolio and caters to the whole health and wellness trend "which we're really kind of a leader in."

Frito-Lay, a PepsiCo company, recently introduced True North nut snacks and also makes Doritos.

"Spitz is a brand that we've admired for a long time," he said. "We have a small sunflower business at Frito-Lay but realistically we like to be the leader in the categories we compete in, and this partnership allows us to become the overnight leader in the category."

Frito-Lay won't be making any changes to Spitz's processing, brand or the variety, Guay added.

Spitz sunflower seeds come in salted, seasoned, dill pickle, spicy, chili lime and smokey bbq, while the pumpkin seeds are available in salted, seasoned and dill pickle. The seeds are roasted using Spitz's own patented process.

"The only change that I think we'll see is because of the extent of our distribution network at Frito-Lay, the Spitz brands both in Canada and other parts of North America will get a lot more exposure," Guay said.

Droog agreed the deal will take the Spitz brand to the next level, which has been the entrepreneurial couple's long-term goal for the business they literally built from the ground up.

"I'm thrilled now that they will bring the name Spitz to worldwide levels, and now I can say instead of the Spitz owners, we are the Spitz founders," Droog said.

Droog said PepsiCo approached him and Emmy about selling last year.

"When a Fortune 500 company comes to you and is interested in the organization, it tells you two things: that you have some value there and . . . you must be running a good show, otherwise they wouldn't come," he said.

Droog said he and Spitz vice-president Myles Hamilton will stay on.

Guay said Droog is very keen on having the Spitz brand and the couple's legacy live on.

"We both thought that the partnership between Frito-Lay and PepsiCo and Spitz would allow him to do that," Guay said, noting the corporation has a tradition of doing just that, having acquired brands like Miss Vickies, Stacy's Pita Chips and Hostess brands.