PepsiCo takes over Sodastream
Author: Mario Schmidtgen
Deal in the billions
The beverage giant PepsiCo wants to take over the Israeli manufacturer of carbonating systems Sodastream. This is a billion-dollar deal worth around 2.8 billion euros. On Monday, both companies announced the takeover. Within the deal, Pepsi will buy Sodastream shares for $ 144 each. This will increase the average price of the past 30 days by 32 percent.
The Sodastream system can convert tap water into sparkling water with a special bottle. The carbonic acid is produced in a cylinder. If it is empty, there is the possibility to exchange it in a store. In Germany, 556,000 machines were sold by Sodastream in 2014.
Due to the takeover of Sodastream, PepsiCo will be able to offer “personalized home-beverage solutions worldwide” said President Ramon Laguarta. Sodastream Director Daniel Birnbaum is also pleased with the deal: “I am delighted that our team will have access to PepsiCo’s enormous resources.”
The PepsiCo brands include Pepsi-Cola, Gatorade, Tropicana, Frito-Lay and Quaker. In 2017, the Group generated around $ 63 billion in over 200 countries. By the acquisition of Sodastream, PepsiCo can expand its strategy of offering more low-calorie products. In addition, the deal contributes to the Groups aim to become more environmentally friendly, since the bottles for own-produced soda are reusable.