Purchase-based PepsiCo Inc. announced on Monday that it would acquire sparkling water company SodaStream International Ltd. for $3.2 billion.
Based in Israel, SodaStream manufactures home devices that allow customers to create carbonated water from tap water. Syrups and flavorings can also be added to the drinks.
Daniel Birnbaum, SodaStream CEO and director, said the transaction “is validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world.”
SodaStream said in a statement that PepsiCo’s strong distribution capabilities, global reach and marketing expertise, combined with SodaStream’s unique product range, will position SodaStream for further expansion.
“I am excited our team will have access to PepsiCo’s vast capabilities and resources to take us to the next level,” Birnbaum said.
PepsiCo said in a statement that the acquisition is another step in its plan to promote “health and wellness through environmentally friendly, cost-effective and fun-to-use beverage solutions.”
“PepsiCo and SodaStream are an inspired match,” said PepsiCo Chairman and CEO Indra Nooyi. “Daniel 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.”
The acquisition news follows an announcement earlier this month that Nooyi is stepping down after 12 years leading the company.
She will be replaced by Ramon Laguarta, a longtime PepsiCo executive who most recently served as company president.
“SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio while catalyzing our ability to offer personalized in-home beverage solutions around the world,” said Laguarta.
The acquisition of SodaStream will be funded with PepsiCo‘s cash on hand and has been unanimously approved by the boards of directors of both companies. The transaction is subject to a SodaStream shareholder vote and certain regulatory approvals.
The deal is expected to close by January.