Pepsi Plans to Buy SodaStream in £2.5 Billion Deal

YouTubeScarlett Johansson in a 2014 advertisement for SodaStream

PepsiCo, the biggest USA food and drinks company, just announced that it will buy Israel's SodaStream company for $3.2 billion dollars.

Purchasing the Israeli company, known for DIY seltzer makers like the SodaStream Mix, will push Pepsi's image in a health-focused direction, according to CNN. She added that SodaStream is in line with the company's "philosophy of making more nutritious products while limiting our environmental footprint".

The deal is likely to close in January.

"Together, we can advance our shared vision of a healthier, more sustainable planet".

Under the deal, announced before the market opened, PepsiCo has agreed to acquire all outstanding shares of SodaStream for $144.00 per share in cash, which represents a 32 percent premium to the 30-day average price.

The purchase will probably be the last big move by PepsiCo chief executive officer Indra Nooyi, who said this month she's stepping down as head of the beverage company after 12 years in the job. The company has seen its share price skyrocket since it went public in 2010 and has had a really strong couple of years, jumping 85 per cent in the past year alone.

As consumers' tastes change, Purchase, New York-based PepsiCo has launched a sparkling, flavored water brand called Bubly, a nod to the success of drinks like La Croix.

More news: Turkey won't change its course due to outer economic pressure - Erdogan

SodaStream, which is listed on the NY and Tel Aviv stock exchanges, has not been immune to the complex politics in its home region.

SodaStream shares jumped 9.4 percent to close at $142.11 in NY, while PepsiCo slipped 0.1 percent to $114.94.

Actress Scarlett Johansson was previously a brand ambassador for the company.

SodaStream's revenues were $543.4 million, while PepsiCo had revenues of $63.5 billion.

Buying SodaStream will further boost Pepsi's health credentials.

Coca-Cola, for its part, said last week that it was buying a stake in BodyArmor, a maker of sports drinks that is endorsed by retired basketball star Kobe Bryant and offers a diet version of the drink is naturally sweetened.

"With sugary carbonates and juices struggling and no turnaround in sight, mitigating the losses through newer and healthier products will be essential for PepsiCo", said Euromonitor International analyst Matthew Barry.

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