Nidan Soki, the Russian juice drinks producer, has agreed the country’s biggest foreign leveraged buy-out after its founders struck a deal with Lion Capital, the private equity firm, valuing it at more than $500m.

Lion Capital, a specialist private equity investor in branded consumer product businesses, such as Orangina drinks and Weetabix cereals, swooped after talks stalled between Nidan Soki and several trade buyers, thought to include Pepsi.

The London-based buy-out fund was drawn to the deal by Russia’s booming soft drinks market – driven by a fast-growing middle class and a rising appetite among consumers for healthy juices.

Production of non-alcoholic beverages leapt by 37 per cent in the first three months of this year, according to the ministry of economy. Experts say that while most Russians prefer to buy foreign cars and clothing, they have remained more loyal to domestically produced food and drinks.

Russia still has a relatively untapped juice market, with consumption per head much lower than other countries, such as Poland or Germany, suggesting more growth potential. Its vast rural areas are particularly underdeveloped.

Nidan Soki is the fourth biggest juice producer in Russia with a 17 per cent share of the market. It was founded in the late 1990s by three entrepreneurs, including Igor Shilov, its chairman, and Csaba Baljer. They have agreed to stay at the company and keep a significant stake.

The company, which has brands including Moya Semya, Sokos, Caprice, Champion and Da!, employs 2,500 staff and has factories in Moscow and Novosibirsk in Siberia. Its net profits more than doubled to Rbs345m ($13.5m) last year, while revenues increased from Rbs1.68bn to Rbs6.64bn.

Its biggest competitors are Lebedyansky, which recently held a successful initial public offering, and Multon, acquired two years ago by Coca-Cola for $650m. Nidan considered an IPO last year, but chose a sale instead.

Goldman Sachs advised Lion Capital and will provide the finance for the deal. Nidan was advised by Troika Dialog.

Private equity is one of the least developed areas in Russia’s financial sector, with only a handful of domestic firms competing against one another. Buy-outs by large global funds have been almost non-existent.

Carlyle, the US firm, closed its Moscow office in 2005 and ditched plans for a $300m Russian fund. TPG Capital, the US private equity firm, is the only global buy-out group to have an office in Russia after opening a Moscow branch this year.

The Russian investment market depends on insiders, such as Baring Vostok Capital Partners, which in March announced the launch of a $1bn fund for mid-sized investments. Alfa Capital Partners, Sputnik Group and Sun Group are also active.