PepsiCo, the biggest US food and drinks company, just announced that it will buy Israel's SodaStream company for $3.2 billion dollars.
With the $3.2 billion purchase, the U.S. beverage giant continues its effort to contend with falling demand for sugar-laden soft drinks, especially sodas.
SodaStream's products, marketed as a healthy alternative to sugary sodas, fit Pepsi's goal of "making more nutritious products while limiting our environmental footprint", Nooyi said in a statement.
Daniel Birnbaum, SodaStream's CEO, said the company is honoured to be chosen as PepsiCo's beachhead into the at-home preparation market.
The keys to Sodastream's business relies on selling flavour packs that allow consumers to add their own mixes to the carbonated water.
Even rival Coca-Cola is diversifying more. The offer represents an 11% premium to the Friday closing price of SodaStream's USA -listed stock and is 32% higher than the company's 30-day volume weighted average price.
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. PepsiCo's move can be seen in the context of global food and drinks companies increasingly looking to acquire companies with more health-conscious credentials.
Earlier this month, SodaStream reported its strongest results in company history, a 31 percent year-over-year jump in revenues to $172 million, an 89 percent leap in operating profit to $32 million and an 82 percent climb in net profit to $26 million.
SodaStream was set up in Britain in 1903 by a London gin distiller, and the company still had a factory in Peterborough as late as 2003, when production transferred to Israel and the West Bank under its new Israeli owners.
In 2014, actress Scarlett Johansen stepped down from her role as Oxfam ambassador after appearing in adverts for the company, while in the same year SodaStream was forced to close a store in Brighton after weekly BDS protests.
"The recent large purchases of Israeli companies proves not only the technological capabilities but also the business capabilities that have developed in Israel", he wrote.