Streamheads have long cherished the indie-crew of eschewing bottled beverages for their own house-made creations. But, now SodaStream is going mainstream—in a big way. On Monday (8.20), beverage behemoth PepsiCo. Inc. (NASDAQ: PEP) announced the acquisition of SodaStream International Ltd. (NASDAQ / TLV: SODA).
Pepsi will spend about $3.2 billion to purchase all of SodaStream’s outstanding shares at $144 per share. For you finance types, that’s a 32% premium over the 30 day volume weighted average price.
“PepsiCo and SodaStream are an inspired match,” said PepsiCo Chairman and CEO Indra Nooyi in statement. “Daniel [Birnbaum of SodaStream] 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. That focus is well-aligned with Performance with Purpose, our philosophy of making more nutritious products while limiting our environmental footprint. Together, we can advance our shared vision of a healthier, more-sustainable planet.”
A press release detailing the buyout made note of plans to share distribution outlets, R&D, and resources between the company. Likely, this means that you will see a lot of complimentary partnerships beginning with Pepsi products sold as a SodaStream friendly flavors. So, that generic “Cola” currently offers is likely not long for this world.
The ink is still not dry the deal. Although the Boards of Directors for both corporations OK’d the move, regulatory approval and a shareholder vote are still necessary. Both are expected by January 2019.