PepsiCo to acquire Israel's SodaStream for $3.2bln

Mubasher: PepsiCo on Monday announced signing a deal to acquire SodaStream International Ltd.

Under the deal PepsiCo will purchase all of SodaStream's outstanding shares at $144 per share in cash, bringing the total value of the deal to $3.2 billion.

PepsiCo's offer "represents a 32% premium on the 30-day volume weighted average price," it said in a statement.

Unanimously approved by the board of both companies, the deal, which will be funded with PepsiCo's cash-on-hand, is expected to close by January 2019.

Commenting on the acquisition, PepsiCo chairperson and CEO Indra Nooyi described the deal as an "inspired match", adding that SodaStream's offering of making great-tasting beverages and reducing the amount of waste generated is in line with PepsiCo's "Performance with Purposephilosophy of making more nutritious products while limiting our environmental footprint."

Under the deal, SodaStream's products will see further expansion, particularly after it benefits from PepsiCo's strong distribution capabilities as well as its global reach, R&D, design and marketing expertise.

Meanwhile, PepsiCo's CEO-elect and president Ramon Laguarta said that the SodaStream acquisition would add to his company's growing water portfolio "while catalysing [its] ability to offer personalised in-home beverage solutions around the world."

The acquisition is subject to a SodaStream shareholder vote along with certain regulatory approvals and other customary conditions.

"Together, we can advance our shared vision of a healthier, more-sustainable planet," Nooyi stated.