PepsiCo is buying the manufacturer of home beverage carbonation systems, SodaStream, for US$3.2 billion, according to a report published on August 20, 2018.
This demonstrates that manufacturers of beverages and snacks are focusing on a health-conscious strategy for growth. PepsiCo has switched its strategy by moving away from sugary soft drinks and focusing on healthier beverages and snacks. SodaStream aligns with Pepsi’s approach, backed by Pepsi’s incoming chief executive, Ramon Laguarta.
PepsiCo has agreed to acquire all outstanding shares of SodaStream for US$144.00 per share in cash, in a transaction valued at US$3.2 billion. The transaction will be funded with PepsiCo’s cash on hand. The strong distribution capabilities, global reach, R&D, design, and marketing expertise of PepsiCo along with SodaStream’s differentiated and unique product range will position SodaStream for further expansion and breakthrough innovation.
Daniel Birnbaum, SodaStream CEO and Director said, “It is a validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world. We are honored to be chosen as PepsiCo’s beachhead for at home preparation to empower consumers around the world with additional choices. I am excited our team will have access to PepsiCo’s vast capabilities and resources to take us to the next level. This is great news for our consumers, employees and retail partners worldwide.”
This acquisition has been unanimously approved by the Boards of Directors of both companies and is subject to a SodaStream shareholder vote, certain regulatory approvals and other customary conditions. The deal closely follows PepsiCo’s rivals the Coca-Cola Company, which last week announced that it had entered into a definitive agreement to acquire a minority ownership stake in Bodyarmor SuperDrink.