PepsiCo buys fizzy drink maker SodaStream for $3.2bn

PepsiCo chiefs called the companies a ‘perfect match’ (Anthony Devlin/PA)
PepsiCo chiefs called the companies a ‘perfect match’ (Anthony Devlin/PA)

Drinks giant PepsiCo has bought Israel’s fizzy drink maker SodaStream for $3.2bn.

PepsiCo said it is acquiring all SodaStream’s outstanding shares at $144 per share, a 32pc premium to the 30-day volume weighted average price.

Earlier this month, SodaStream reported its strongest results in company history, a 31pc year-over-year jump in revenues to $172m, an 89pc leap in operating profit to $32m and an 82pc climb by net profit to $26m.

PepsiCo chairman and CEO Indra Nooyi has called the companies “an inspired match”.

Founded in the UK in 1903, SodaStream was a coveted device in British kitchens in the 1970s and 80s, allowing customers to create fizzy drinks by adding flavoured syrups to carbonated water, but it faded in popularity as soft drinks became cheaper.

The Israel-based company now focuses on turning water into sparkling water to tap into a trend towards younger and more health- and environmentally-conscious consumers.

Three years ago, SodaStream shut down its West Bank factory amid international boycott calls and opened a sprawling new factory deep in Israel’s Negev Desert instead.

Actress Scarlett Johansson was previously a brand ambassador for the company.

Press Association

!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?’http’:’https’;if(!d.getElementById(id)){js=d.createElement(s);;js.src=p+’://’;fjs.parentNode.insertBefore(js,fjs);}}(document, ‘script’, ‘twitter-wjs’);