PepsiCo has entered into an agreement to acquire SodaStream in a deal valued at $3.2 billion.
According to Pepsico, the beverage and snack company has agreed to purchase all outstanding shares of SodaStream for $144 per share in cash, representing a 32% premium to the 30-day volume weighted average price. The transaction will be funded with PepsiCo’s cash on hand.
“Today marks an important milestone in the SodaStream journey,” said Daniel Birnbaum, CEO of SodaStream. “It is validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world. 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.”
For Pepsi, the SodaStream acquisition gives the company opportunities to offer personalized in-home beverage solutions, said Ramon Laguarta, Pepsi’s CEO-elect and president.
“From breakthrough innovations like Drinkfinity to beverage dispensing technologies like Spire for food service and Aquafina water stations for workplaces and colleges, PepsiCo is finding new ways to reach consumers beyond the bottle, and today’s announcement is fully in line with that strategy,” Laguarta said.
Announcement of the deal comes just weeks after SodaStream announced another strong quarter of growth, with global revenue up 31%. The company also restated full-year guidance and expects revenue to increase approximately 23% over 2017 revenue, up from its previous guidance of approximately 15%.
The acquisition has been unanimously approved by the boards of directors of both companies, but is subject to a vote by SodaStream shareholders and will also need other regulatory approvals. Closing of the deal is expected by January 2019.