PepsiCo (NASDAQ:PEP) has agreed to buy carbonated drinks maker Sodastream for US$3.2bn as it seeks to reach customers in their homes rather than through stores.
Sodastream, based in Israel, sells a machine and refillable cylinders that allow users to make their own carbonated drinks.
PepsiCo’s decision to buy Sodastream comes at a time when its sugary softdrinks are becoming less popular due to a rise in the number of health conscious consumers.
It marks the first major acquisition since chief executive Indra Nooyi said she would leave the company in October after 12 years in the top job.
PepsiCo will pay US$144 for each Sodastream share, representing a 11% premium to the closing price on Friday.
PepsiCo president Ramon Laguarta, who will succeed Nooyi, said: "PepsiCo is finding new ways to reach consumers beyond the bottle”.
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He added that the acquisition would be complementary and incremental to Pepsi’s business.
The deal is expected to be completed in January 2019, subject to regulatory approval.
Sodastream was previously a subsidiary of Cadbury Schweppes in 1985 before it was taken over by Israeli firm Soda-Club in 1998.