Pepsico Acquires Sparkling Water Maker SodaStream For $3.2 Billion in All-Cash Deal

Pepsico (PEP) said Monday that it would acquire sparkling water brand SodaStream in a deal valued at $3.2 billion.

SodaStream shareholders will receive $144 per share in cash, representing a 32% premium to the 30-day average price, Pepsi said in a statement. The deal will be funded with Pepsi’s cash on hand. the acquisition was unanimously approved by both companies’ boards, but is subject to approval from SodaStream stakeholders.

If approved, the transaction is expected to close by January. Incoming Pepsi Chief Executive Ramon Laguarta said SodaStream is “highly complementary” and “incremental” to the company’s business.

The acquisition is another highlight in current Pepsi CEO Indra Nooyi’s legacy at the company. Nooyi held the company’s top position for 12 years and has been with Pepsi for 22 years, and will leave in October. She called the companies “an inspired match.” The addition of SodaStream is aligned with Pepsi’s “Performance with Purpose” strategy to make healthier products and reduce its environmental footprint.

SodaStream CEO Daniel Birnbaum said in a statement that the deal is an “important milestone” for the company.

“It is validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world,” he said. “We are honored to be chosen as PepsiCo’s beachhead for at home preparation to empower consumers around the world with additional choices.”