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PepsiCo to Buy SodaStream in $3.2 Billion Deal

In recent news, the beverage and snack super-giant, PepsiCo (NASDAQ:PEP), has announced their plans to purchase SodaStream (NASDAQ:SODA) for the sum of $144.00 per share of SodaStream or the equivalent to $3.2 billion.  This move is said to be made in the hopes of moving with the market as it shifts more towards healthier options.

PepsiCo (NASDAQ:PEP) is known for their brands such as Frito-Lay, Pepsi-Cola, Gatorade, and Quaker Oats, all of which are staple house-hold names at this point.  PepsiCo’s primary focus has been on their beverages, which always tend to be high in sugar as this was the preferred drink for the past years.  In wake of the “natural,” “organic,” and “healthy” phase consumers are leaning towards, PepsiCo has decided to gear their business towards the changing market.

The decision to purchase SodaStream was one in line with CEO Indra Nooyi’s strategies to shift PepsiCo away from sugary drinks and into healthier alternatives.  Nooyi recently announced her plans to step down as PepsiCo CEO, in the beginning of 2019.

SodaStream (NASDAQ:SODA) is actually an Israeli-based tech company which develops products for consumers to turn drinking water into a carbonated beverage.  This technology allows the user to have more control over their beverage preferences such as the strength of the carbonation or the flavor.  SodaStream products are currently sold in 45 different countries, supported by over 80,000 retail stores.

SodaStream is currently coming off their best quarter in company history causing the stock to soar 26.35% on the day.  In their earnings report, SodaStream, stated that sales of water makers was up 22% and gas refill units up 17%.

PepsiCo’s purchase of SodaStream is aimed to fit in line with PepsiCo’s “new ways to reach consumers beyond the bottle.”

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