PepsiCo (NASDAQ:PEP) has announced it is acquiring Sodastream for $3.2 billion (£2.5 billion).
Sodastream is an Israel-based maker of fizzy drink dispensers, the company was founded in 1903.
The news comes just weeks after the announcement of the departure of long-standing chief executive, Indra Nooyi, after more than 12 years in charge.
Ms Nooyi was succeeded by Mr Ramon Laguarta, who was appointed unanimously by the board.
“SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio, while catalysing our ability to offer personalised in-home beverage solutions around the world,” said Mr Laguarta, currently, President of PepsiCo.
Pepsi agreed to pay $144 per share in case, marking an 11 percent premium on Sodastream’s current share price.
Pepsi expecting the acquisition to compliment their transition into healthier snacks and beverages.
SodaStream is marketed as a better for you alternative to traditional carbonated beverages, with considerably less calories than Coca Cola, for instance.
Despite the deal, SodaStream will continue to operate under the leadership of current chief executive Daniel Birnbaum.
In comments to the Financial Times, Mr Birnbaum said of the acquisition: “The intent is to maintain the business as a standalone unit, keep the growth, maintain the culture and not stifle the organisation with corporate types of restrictions,”
Shares in Pepsico are currently up +0.62 percent as of 11.06AM (GMT). Meanwhile, SodaStream shares are up +0.36 percent.