PepsiCo buying SodaStream for $3.2 billion in cash

  • PepsiCo buying SodaStream for $3.2 billion in cash

PepsiCo buying SodaStream for $3.2 billion in cash

"Together, we can advance our shared vision of a healthier, more-sustainable planet", she said.

With soft-drink sales hurting in recent years as consumers shy away from sugary beverages, SodaStream Chief Executive Officer Daniel Birnbaum has shifted the company's marketing to focus on how the machines can produce carbonated water, without the flavoured syrups.

PepsiCo chairman and CEO Indra Nooyi has called the companies "an inspired match". SodaStream shares were suspended in Tel Aviv on Monday morning.

PepsiCo said it was acquiring all SodaStream's outstanding shares at $144 USA per share, a 32 per cent premium to the 30-day volume weighted average price.

"SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio", said Ramon Laguarta, who is set to replace Nooyi in October.

The deal is expected to go through by January 2019 after approval by SodaStream shareholders but the deal has been unanimously approved by the directors of both companies. It is validation of our mission to bring healthy, convenient and environmentally-friendly beverage solutions to consumers around the world.

Speculation about PepsiCo or Coca-Cola buying Sodastream has bubbled for years.

SodaStream sells machines that carbonate tap water.

Matthew Barry, senior analyst of beverages at Euromonitor International, said deals like the SodaStream purchase were vital for PepsiCo as it passes to new management.

SodaStream shares have jumped 49 per cent this month after the company boosted its forecast for revenue growth this year to 23 per cent and reported first-half figures that beat estimates.

Pepsi said its strong global distribution capabilities would position SodaStream for further expansion.

Three years ago, SodaStream shut down its West Bank factory amid worldwide boycott calls and opened a sprawling new factory deep in Israel's Negev Desert instead.

Goldman Sachs acted as financial advisor to PepsiCo and Centerview also acted as financial advisor to PepsiCo.