PepsiCo is buying SodaStream for $US3.2 billion cash

YouTubeScarlett Johansson in a 2014 advertisement for SodaStream.
  • Israeli-based SodaStream listed on the NASDAQ in 2010.
  • PepsiCo will pay $144.00 per share in cash, a 32% premium.
  • Pepsi CEO Indra Nooyi, who’s led the business for 12 years, announced earlier this month that she’d step down, having led a push away from sugar-based drinks and healthier options.

PepsiCo is buying SodaStream, a home system for carbonating water, for $US3.2 billion ($AU4.4bn) in a deal which will give the beverage giant direct access to customers in their homes.

The deal sees PepsiCo paying $US144.00 in cash for each SodaStream share, a 32% premium to the 30-day volume weighted average price. The transaction will be funded with PepsiCo’s cash on hand.

“PepsiCo and SodaStream are an inspired match,” says PepsiCo Chairman and CEO Indra Nooyi.

She says SodaStream is an extraordinary company offering consumers the ability to make great-tasting beverages while reducing the amount of waste.

“That focus is well-aligned with performance with purpose, our philosophy of making more nutritious products while limiting our environmental footprint,” says Nooyi.

“Together, we can advance our shared vision of a healthier, more-sustainable planet.”

Daniel Birnbaum, SodaStream CEO, says the company is honored to be chosen as PepsiCo’s beachhead into the at-home preparation market.

“I am excited our team will have access to PepsiCo’s vast capabilities and resources to take us to the next level,” he says. “This is great news for our consumers, employees and retail partners worldwide.”

The acquisition has been unanimously approved by the Boards of Directors of both companies.

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

SodaStream is available at more than 80,000 individual retail stores across 45 countries.

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