PepsiCo buys SodaStream in $3.2bn deal

The Pepsi and Walker’s Crisps owner purchased all outstanding shares of SodaStream at a 32% premium on their 30-day average price, equivalent to £144 per share (£113.07p).

Departing PepsiCo chairman and chief executive Indra Nooyi described the acquisition of SodaStream as an “inspired match” ​for the business.

“Daniel​ Birnbaum ​[SodaStream chief executive and director] 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.”​

PepsiCo’s Performance with Purpose scheme looks to promote health and wellness through environmentally friendly, cost-effective and ‘fun to use’ beverage solutions. 

Milestone for SodaStream​

Birnbaum said the deal marked an important milestone for SodaStream and was a “validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world”.​

“We are honoured to be chosen as PepsiCo's beachhead for at-home preparation to empower consumers around the world with additional choices,” ​he added.

“I am excited our team will have access to PepsiCo’s vast capabilities and resources to take us to the next level. This is great news for our consumers, employees and retail partners worldwide.”​

Ramon Laguarta, PepsiCo chief executive-elect and president, said SodaStream was highly complementary to the business and added to its growing water portfolio.

“From breakthrough innovations like Drinkfinity, to beverage dispensing technologies like Spire for foodservice and Aquafina water stations for workplaces and colleges, PepsiCo is finding new ways to reach consumers beyond the bottle, and today’s announcement is fully in line with that strategy,”​ said Laguarta.

Subject to shareholder vote​

While the boards of both companies have unanimously voted in favour of the acquisition, the transaction is still subject to a SodaStream shareholder vote, regulatory approvals and other “customary conditions​”. PepsiCo said it expected the deal to close by January 2019.

SodaStream is a manufacturer and distributor of sparkling water makers, which allow consumers to make sparkling water at home. Its products are available in 80,000 retail stores across 45 countries, including the UK.

Last year, the company landed in hot water with the Advertising Standards Authority, after two of its adverts that appeared on digital platforms – featuring characters and locations from the popular Game of Thrones television series – were banned for using inappropriate language and unsubstantiated claims.

Meanwhile, the number of mergers and acquisitions in the food and drink industry has dropped​​ during 2018 compared with last year, according to industry advisory service Alantra.