PepsiCo Inc. agreed to buy fizzy-drinks dispenser SodaStream International Ltd. for US$3.2 billion to extend the company synonymous with sugary sodas into the homes of more health-conscious consumers. NEW YORK: PepsiCo said on Monday (Aug 20) it was buying Israeli company SodaStream for US$3.2 billion as the US beverage giant contends with falling demand for sugar-laden soft drinks among health-conscious consumers. That’s 11 per cent higher than Friday’s closing price and would be the Purchase, New York-based company’s largest acquisition in eight years. The stock rose 10 per cent to US$143.36 in premarket trading in the U.S.

With soft-drink sales hurting in recent years as consumers shy away from sugary beverages, SodaStream Chief Executive Officer Daniel Birnbaum has shifted the company’s marketing to focus on how the machines can produce carbonated water, without the flavoured syrups. PepsiCo chief executive Indra Nooyi, who is stepping down following 12 years at the helm, characterised the purchase of Tel Aviv-based SodaStream as consistent with the US company's sustainability push, which involves pledges on producing healthier goods, boosting water-use efficiency and reducing waste.
PepsiCo announces its intent to buy SodaStream, a manufacturer of products for in-home soft drink production, for US$3.2 billion. The deal awaits approval by regulators.