Pepsi set to acquire SodaStream for $3.2bn
The US-based beverage giant, Pepsi, has announced that it plans to purchase SodaStream for $3.2bn, CNBC reports.
The deal will see the giant agree to pay $144 per share in return for SodaStream’s stock which is believed to be a 32% premium to its 30-day volume weighted average price.
SodaStream, which is based in Israel despite being founded in England, offers at-home carbonated drinks and sells over 100 different types of concentrated syrups and flavourings to make the drinks.
The machine has refillable cylinders that enables consumers to make their own soda or carbonated water drinks
The acquisition will see Pepsi explore another way of offering its services by reaching customers in their homes.
Speaking to CNBC, PepsiCo CFO Hugh Johnston said: “We get to play in a business — home beverages — where we don't play.”
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Incoming CEO, Ramon Laguarta, who replaces Indra Nooyihas in October, said: “SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio, while catalyzing our ability to offer personalized in-home beverage solutions around the world.”
“PepsiCo is finding new ways to reach consumers beyond the bottle.”
According to research by Food Marketing Institute and Nielson, it is expected that 70% of shoppers will buy their groceries online by 2025.
Pepsi’s acquisition of SodaStream is anticipated to be finalised by January 2019.