The global snack and soft drinks company will pay $144.00 per share in cash, which represents a 32% premium to the 30-day volume weighted average price.
Israel-based SodaStream’s US-listed shares leaped 9.6 per cent following the deal.
PepsiCo Chairman and CEO Indra Nooyi said that the two companies are an “inspired match”.
“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. That focus is well-aligned with Performance with Purpose, our philosophy of making more nutritious products while limiting our environmental footprint. Together, we can advance our shared vision of a healthier, more-sustainable planet,” she said.
Nooyi who is stepping down from her role as CEO later this year, has led the way for PepsiCo to venture into healthier and organic products.
The deal is another step in PepsiCo’s Performance with Purpose journey, promoting health and wellness through environmentally friendly and cost-effective beverage solutions.
SodaStream CEO and Director Daniel Birnbaum said that the it is an “important milestone” in SodaStream’s journey.
“It is 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,” Birnbaum said.
PepsiCo’s strong distribution capabilities, global reach and design and marketing expertise, combined with SodaStream’s differentiated and unique product range is expected to position SodaStream for further expansion and breakthrough innovation.