PepsiCo to Acquire SodaStream for $3.2 Billion

Transaction adds to beverage giant’s 'growing water portfolio'

PURCHASE, N.Y. -- PepsiCo Inc. has entered into an agreement with SodaStream International Ltd. to acquire all outstanding shares of in-home beverage system SodaStream for $144 per share in cash. The transaction has been valued at $3.2 billion and has been unanimously approved by the boards of directors of both companies.

“We are honored to be chosen as PepsiCo’s beachhead for at-home preparation to empower consumers around the world with additional choices,” said Daniel Birnbaum, director and CEO of SodaStream, Lod, Israel.

PepsiCo denied reports in 2013 that the company was in talks to buy SodaStream.

The acquisition is subject to a SodaStream shareholder vote, certain regulatory approvals and other customary conditions, and the companies expect to close the deal by January 2019.

PepsiCo’s distribution capabilities, global reach, research and development, design, and marketing expertise, combined with SodaStream’s differentiated and unique product range, will position SodaStream for further expansion and breakthrough innovation, PepsiCo said.

“PepsiCo and SodaStream are an inspired match,” said PepsiCo Chairman and CEO Indra Nooyi. “Daniel and his leadership team have built an extraordinary company that is offering consumers the ability to make great-tasting beverages while reducing the amount of waste generated.”

The acquisition also aligns with PepsiCo’s Performance With Purpose, its philosophy of making more nutritious products while limiting its environmental footprint.

“SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio, while catalyzing our ability to offer personalized in-home beverage solutions around the world,” said Ramon Laguarta, president and CEO-elect of PepsiCo. (Nooyi is stepping down Oct. 3 as CEO.) “From breakthrough innovations like Drinkfinity to beverage dispensing technologies like Spire for foodservice and Aquafina water stations for workplaces and colleges, PepsiCo is finding new ways to reach consumers beyond the bottle, and today’s announcement is fully in line with that strategy.”

Purchase, N.Y.-based PepsiCo generated more than $63 billion in net revenue in 2017, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales.

Photo courtesy of PepsiCo. 

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