New York : PepsiCo on Monday said it was buying Israeli company SodaStream for $3.2 billion as the US beverage giant contends with falling demand for sugar-laden soft drinks among health-conscious consumers.
SodaStream makes machines that carbonate home tap water, and both PepsiCo and its arch-rival Coca-Cola have been diversifying away from their mainstay fizzy drinks in part to counter the onset of anti-obesity sugar taxes around the world.
SodaStream offers consumers “the ability to make great-tasting beverages while reducing the amount of waste generated”, PepsiCo chief executive Indra Nooyi, who is stepping down following 12 years at the helm, said in a statement.
Along with the health appeal of its product over traditional soft drinks, SodaStream’s reusable bottles are another marketing point exploited by the Israeli company as consumers are urged to shun polluting plastics.
Under the cash deal, PepsiCo is to pay $144 per share for SodaStream’s outstanding stock, a premium of 11 per cent over its closing price on Friday.
SodaStream shares were up more than 10 per cent at $143.02 in pre-market US trading on Monday.
