PepsiCo is to buy Israel-based SodaStream in a deal worth $3.2 billion.
The two firms announced that they have entered into a deal that will see PepsiCo acquire all outstanding shares of the carbonated drinks machine maker for $144 per share in cash.
This represents a 32% premium to the 30-day volume weighted average price, PepsiCo said in a statement.
'An Inspired Match'
“PepsiCo and SodaStream are an inspired match," commented outgoing PepsiCo chairman and CEO Indra Nooyi. "Daniel [Birnbaum, CEO of SodaStream] 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.”
Nooyi added that the business’ focus is “well-aligned with PepsiCo’s own Performance with Purpose agenda to develop more nutritious products while limiting the company’s environmental footprint.
“Together, we can advance our shared vision of a healthier, more-sustainable planet,” she said.
'Important Milestone'
Daniel Birnbaum, SodaStream CEO said that the deal marks an “important milestone” in the development of the brand.
“It is validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world,” he said.
“We are honoured 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."
PepsiCo said that it will use its distribution capabilities, marketing reach and R&D development structure to help ‘position SodaStream for further expansion and breakthrough innovation’.
"SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio, while catalysing our ability to offer personalised in-home beverage solutions around the world," added Ramon Laguarta, CEO-Elect and President, PepsiCo.
The acquisition has been ‘unanimously approved’ by both PepsiCo and SodaStream’s boards, however it is still subject to a SodaStream shareholder vote.
The deal is expected to close by January of next year.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
