PepsiCo buys Sodastream for $3.2bn

PepsiCo buys Sodastream for $3.2bn

Speaking to CNBC, PepsiCo CFO Hugh Johnston said, "We get to play in a business - home beverages - where we don't play". "That focus is well-aligned with Performance with goal, our philosophy of making more nutritious products while limiting our environmental footprint", said PepsiCo Chairman and CEO Indra Nooyi. SodaStream makes machines that carbonate home tap water.

He added: "PepsiCo is finding new ways to reach consumers beyond the bottle". Last week, Coca-Cola agreed to buy a minority stake in Bodyarmor, a sports-drink maker whose backers include former basketball star Kobe Bryant, in a further move to diversify beyond sugary, fizzy beverages.

SodaStream's performance improved following a shift in strategy that put more emphasis on sparkling water over soda, and cultivating a loyal user base that continues to use the device after purchasing it.

PepsiCo will pay US$144 a share in cash, the companies said in a statement on Monday.

It reported a 31% year-over-year jump in revenues to $172m (£134m), an 89% leap in operating profit to £32m (£25m) and an 82% climb by net profit to £26m (£20m).




Three years ago, SodaStream shut down its West Bank factory amid worldwide boycott calls and opened a sprawling new factory deep in Israel's Negev Desert instead, although the company remains a boycott target despite the move.

In 2015, SodaStream shut down a plant in the West Bank following a boycott campaign that included targeting Hollywood actress Scarlett Johansson after she advertised its product. She parted ways with the worldwide charity Oxfam because of a dispute over her work with SodaStream.

Pepsi will buy household drink-machine maker SodaStream for $3.2bn as it battles chief rival Coca-Cola for an edge in the health-conscious beverage market.

"The recent large purchases of Israeli companies proves not only the technological capabilities but also the business capabilities that have developed in Israel", he wrote.

SodaStream shares jumped 9.4 percent to close at $142.11 in NY, while PepsiCo slipped 0.1 percent to $114.94.

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