The deal, for $144 per share in cash, is a 32% premium to the 30-day volume weighted average share price of SodaStream, which earlier this month reported what it said was its “most successful quarter” ever and its ninth consecutive quarter of double-digit revenue growth.
SodaStream manufactures a device that can carbonate drinks, including water, at home. The company also sells a number of flavors and syrups that can be used to make various carbonated drinks at home. Its emphasis has been to promote healthier drinks, which, if made at home, can be controlled for sugar and other additives.
Daniel Birnbaum, SodaStream chief executive officer and director, said in a statement: “Today marks an important milestone in the SodaStream journey. It is validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world. We are honored to be chosen as PepsiCo’s beachhead for at home preparation to empower consumers around the world with additional choices.”
PepsiCo outgoing chairwoman and CEO Indra Nooyi added: “Daniel and his leadership team have built an extraordinary company that is offering consumers the ability to make great-tasting beverages while reducing the amount of waste generated. That focus is well-aligned with Performance with Purpose, our philosophy of making more nutritious products while limiting our environmental footprint. Together, we can advance our shared vision of a healthier, more-sustainable planet.”
The deal is expected to close by January 2019, pending approval by regulators and SodaStream shareholders. SodaStream will be run as an independent division, and its current management team will remain intact—a setup both parties said was essential in order for the Israeli company to maintain its entrepreneurial culture.