PepsiCo to buy Israel’s SodaStream in US$3.2 billion deal

Employees pack boxes of the SodaStream product at the factory in the West Bank Jewish settlement of Maale Adumim, January 2014. (Reuters pic)

NEW YORK: PepsiCo is buying household drink-machine maker SodaStream in a US$3.2 billion deal, it said on Monday, seeking an edge in health-conscious beverages as it battles chief rival Coca-Cola .

PepsiCo will acquire SodaStream for US$144 per share in cash, representing a 10.9% premium to the Friday closing price of SodaStream’s US-listed stock.

SodaStream, which makes machines that turn tap water into carbonated water, will help diversify PepsiCo’s portfolio of snacks and beverages. The Purchase, New York-based group will use cash on hand to fund the acquisition.

SodaStream’s Israel-listed shares will be halted for trading until its Nasdaq-listed stock opens later on Monday, the Tel Aviv Stock Exchange said in a statement.