PepsiCo Talking With SodaStream International About Buying The Israeli Company For $2B Or More

 @MikeObelm.obel@ibtimes.com
on June 06 2013 9:16 AM
Old Style Pepsi Bottle
A 20-ounce Pepsi bottle with a retro-style label. Twitter

U.S. beverage giant PepsiCo, Inc. (NYSE:PEP) is negotiating a possible $2 billion purchase of Israel's SodaStream International (SODA.O), whose machines make carbonated drinks from tap water.

Reuters, citing financial newspaper Calcalist, said PepsiCo might even be willing to pay more than $2 billion for the company, which also makes flavors, carbon dioxide refills and reusable bottles, and was listed on Nasdaq in 2010.

Pepsi, which has reportedly already made an offer for SodaStream, is interested in SodaStream's potential to expand in the United States after its U.S. sales doubled in 2012, according to the Calcalist.

Global sales at SodaStream, which has a market capitalization of $1.4 billion and sells at upscale department stores such as Harrods as well as at budget chains like U.S. group Target Corp. (NYSE:TGT) , have increased more than threefold since 2009. SodaStream reported revenue of more than $436 million last year, with net profit up 18 percent to $44 million. 

Share this article

More News from IBT MEDIA