This morning, PepsiCo announced its arrangement to buy Tel Aviv based company SodaStream, known for its do-it-yourself seltzer makers, for $3.2 billion. The deal arises as both companies are adapting to consumer demand for healthier products.
“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,” PepsiCo Chairman and CEO Indra Nooyi said, referring to Sodastream CEO and director Daniel Birnbaum. “That focus is well-aligned with Performance with Purpose, our philosophy of making more nutritious products while limiting our environmental footprint.”
The acquisition was approved unanimously by the Board of Directors of both companies. By combining PepsiCo’s resources and SodaStream’s products, both companies are looking forward to advancing their “shared vision of a healthier, more-sustainable planet,” Nooyi said .
“We are honored to be chosen as PepsiCo’s beachhead for at home preparation to empower consumers around the world with additional choices,” adds Birnbaum.
SodaStream has risen in popularity as a less expensive, environmentally friendly alternative to soda and sugary carbonated drinks. After rebranding itself as a sparkling water company two years ago, its stock surged more than 320%.
“PepsiCo is finding new ways to reach consumers beyond the bottle, and today’s announcement is fully in line with that strategy,” said Ramon Laguarta, PepsiCo CEO-Elect and President.
Laguarta, PepsiCo’s head of global operations, will replace Nooyi as CEO. Nooyi plans to step down in October after 12 years, during which sales grew 80%.
The transaction is expected to close by January 2019.