PepsiCo has agreed to buy Israeli drinks firm SodaStream for $3.2bn (£2.5bn), in a sign that the company intends to persist with its healthy product ambitions amid the departure of its long-reigning chief executive.
The landmark deal comes several weeks after PepsiCo boss Indra Nooyi said she would step down after 12 years of leading the company, in a tenure which was defined by a new strategy to expand into the healthier snacks and beverages markets.
Under the terms of the agreement, PepsiCo will buy all outstanding shares of SodaStream for $144 each.
The deal with Nasdaq-listed SodaStream, which sells home drink dispenser machines for carbonating water, is expected to be sealed in January 2019 if regulators and SodaStream shareholders approve the deal.
Nooyi said SodaStream’s focus on both waste reduction and popular drinks was well-aligned with PepsiCo’s "philosophy of making more nutritious products while limiting our environmental footprint".
PepsiCo president Ramon Laguarta, who is set to succeed Nooyi in early October, said SodaStream was "highly complementary and incremental" to Pepsi's business.
He added: "PepsiCo is finding new ways to reach consumers beyond the bottle."
The acquisition comes less than a week after its rival Coca-Cola bought a minority stake in sports drink maker BodyArmor, in a move to gain a greater share of the energy drinks market which is currently dominated by Pepsi’s Gatorade business.