SodaStream International Soars Pre-Bell as Pepsi Discloses $3.2 Bln Acquisition Targeting In-Home Solutions Market

Shares of SodaStream International Ltd. (SODA), the top sparkling water brand in the world by volume, surged in pre-market trading on Monday, after PepsiCo, Inc. (PEP) said it has agreed to acquire SodaStream in a $3.2 billion deal that would catalyze Pepsi’s ability to offer personalized in-home and cost-effective beverage solutions.

The US soft-drinks giant, whose products are used more than one billion times a day globally, said it was buying SodaStream at $144.00 per share, a 32% premium to the 30-day volume weighted average price, according to a statement. The transaction is being funded with cash on hand.

Citing innovations such as Drinkfinity and dispensing technologies like Spire for foodservice and Aquafina water stations for workplaces and colleges, Pepsi said it was looking for new ways to reach consumers beyond the bottle, and the SodaStream takeover is “fully in line with that strategy.”

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Pepsi noted that its distribution capabilities, global reach, and marketing expertise would position SodaStream, which transforms ordinary tap water into sparkling and flavored sparkling water in seconds, for further expansion and breakthrough innovation.

“SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio,” said Ramon Laguarta, CEO-elect and President of Pepsi.

The acquisition has been unanimously approved by the boards of both companies. The transaction is subject to a SodaStream shareholder vote, certain regulatory approvals and other customary conditions, and closing is expected by January 2019.

Shares of SodaStream, whose products are available at more than 80,000 individual retail stores across 45 countries, surged more than 10% in trading before the market-open early on Monday.

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