Why Pepsi Is Paying $3.2 Billion to Buy SodaStream

Aug 20, 2018  •  Post A Comment

PepsiCo has reached a $3.2 billion deal to buy sparkling water maker SodaStream in a move by outgoing CEO Indra Nooyi to drive the brand toward healthier drinks.

“Nooyi said this month said she’ll step down in October after more than a decade as CEO,” CNN notes. “She has steered Pepsi toward healthier offerings, saying it’s important for the company’s future because of consumers’ increasing attention to health.”

Products from SodaStream, an Israeli company, are marketed as a healthy alternative to sugary sodas. In a statement, Nooyi said SodaStream’s products fit Pepsi’s goal of “making more nutritious products while limiting our environmental footprint. Together, we can advance our shared vision of a healthier, more sustainable planet.”

CNN notes that SodaStream’s stock has risen more than 320% in the past two years after it rebranded as a sparkling water company.

“The deal will be funded using Pepsi’s cash on hand and has been unanimously approved by the boards of both companies,” CNN reports. “It is expected to close by January, pending a SodaStream shareholder vote and certain regulatory approvals.”

One Comment

  1. Pepsi is following another trend that tech companies are following. Get a physical presence in the home. It will be interesting to see how Pepsi uses that presence.

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