Purchase's PepsiCo Snatches Up SodaStream
The local soft drink giant purchased the Israeli sparkling water company for a cool $3.2 billion.
Adobe Stock / karandaev
PepsiCo, the Purchase-based food and drink company that owns such brands as Frito-Lay and Tropicana, announced earlier this week it will be buying up the Israeli-based SodaStream for $144 per outstanding share of the company, or $3.2 billion. The purchase amount represents a 32% premium to the weighted average price of the company’s shares. SodaStream is the #1 sparkling water brand by volume in the world.
"PepsiCo and SodaStream are an inspired match," said soon-to-be-outgoing PepsiCo CEO Indra Nooyi in a statement. "Daniel [Birnbaum], 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."
Goldman Sachs served as financial adviser to PepsiCo for the transaction, which was unanimously approved by both PepsiCo and SodaStream’s board of directors. The transaction is still subject to a vote by SodaStream shareholders as well as other regulatory approvals and conditions. The deal is slated to be closed by January 2019.
"Today marks an important milestone in the SodaStream journey,” said SodaStream’s CEO and Director Daniel Birnbaum in a release. “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.."