PepsiCo buys Israel's SodaStream for $3.2 billion as sparkling water gains appeal

Nathan Bomey USA TODAY

Published 11:56 p.m. UTC Aug 20, 2018

PepsiCo announced Monday that it is buying personal beverage making device company SodaStream for $3.2 billion.

The deal comes as beverage and snack giant PepsiCo continues to seek ways to diversify its business away from sugary sodas. Israel-based SodaStream has capitalized on rising interest in sparkling water.

SodaStream sells a countertop device that enables consumers to quickly turn tap water into carbonated water. Flavor can be added with special drops and syrups.

The acquisition marks one of the last big moves by CEO and Chairman Indra Nooyi, who recently announced her plans to step down from her CEO post in October. 

"PepsiCo and SodaStream are an inspired match," Nooyi said in a statement. It's "an extraordinary company that is offering consumers the ability to make great-tasting beverages while reducing the amount of waste generated."

PepsiCo will pay $144 per share for SodaStream stock, which had closed at $129.85 on Friday.

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The company said it "will position SodaStream for further expansion and breakthrough innovation."

SodaStream sells products at more than 80,000 stores in 45 countries.

PepsiCo shares were largely unchanged in pre-market trading. SodaStream shares rose 10.1 percent to $143.02.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

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