PepsiCo to buy Israel’s SodaStream in US$3.2 billion deal

PepsiCo to buy Israel’s SodaStream in US$3.2 billion deal

SodaStream, which makes machines that turn tap water into carbonated water, will help diversify PepsiCo's portfolio of snacks and beverages.

Employees pack boxes of the SodaStream product at the factory in the West Bank Jewish settlement of Maale Adumim, January 2014. (Reuters pic)
NEW YORK:
PepsiCo is buying household drink-machine maker SodaStream in a US$3.2 billion deal, it said on Monday, seeking an edge in health-conscious beverages as it battles chief rival Coca-Cola .

PepsiCo will acquire SodaStream for US$144 per share in cash, representing a 10.9% premium to the Friday closing price of SodaStream’s US-listed stock.

SodaStream, which makes machines that turn tap water into carbonated water, will help diversify PepsiCo’s portfolio of snacks and beverages. The Purchase, New York-based group will use cash on hand to fund the acquisition.

SodaStream’s Israel-listed shares will be halted for trading until its Nasdaq-listed stock opens later on Monday, the Tel Aviv Stock Exchange said in a statement.

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