Food and beverage giant PepsiCo announced Monday it had reached an agreement with SodaStream to acquire all outstanding shares of the Israel-headquartered company in an all-cash deal valued at $3.2 billion. The offer price of $144 for each of SodaStream’s shares reflects an almost 11 percent premium to the company’s Friday closing share price of $129.85 on Nasdaq, but a bigger 32 percent premium to the 30-day volume weighted average price.

SodaStream manufactures a device that can carbonate drinks, including water, at home. The company also sells a number of flavors and syrups that can be used to make various carbonated drinks at home. Its emphasis has been to promote healthier drinks, which, if made at home, can be controlled for sugar and other additives.

Daniel Birnbaum, SodaStream CEO and director, said in a statement: “Today marks an important milestone in the SodaStream journey. It is validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world. We are honored to be chosen as PepsiCo’s beachhead for at home preparation to empower consumers around the world with additional choices.”

Employees pack boxes of the SodaStream product at a factory in the West Bank Jewish settlement of Maale Adumim, Jan. 28, 2014. REUTERS/Ammar Awad

In the same statement, PepsiCo outgoing chairwoman and CEO Indra Nooyi said: “Daniel and his leadership team have built an extraordinary company that is offering consumers the ability to make great-tasting beverages while reducing the amount of waste generated. That focus is well-aligned with Performance with Purpose, our philosophy of making more nutritious products while limiting our environmental footprint. Together, we can advance our shared vision of a healthier, more-sustainable planet.”

Performance with Purpose was launched by Pepsi in 2006, when Nooyi was CEO, and its stated purpose is to position the company “for long-term success and ingraining sustainability into our daily business operations.”

As retail habits of consumers shift from brick-and-mortar stores to online shopping, this move by Pepsi could find a non-traditional way to reach new consumers.

“SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio, while catalyzing our ability to offer personalized in-home beverage solutions around the world. … PepsiCo is finding new ways to reach consumers beyond the bottle, and today’s announcement is fully in line with that strategy,” Ramon Laguarta, president of PepsiCo and the man chosen to take over after Nooyi’s departure Oct. 3, said in the statement.

“We get to play in a business — home beverages — where we don’t play,” PepsiCo chief financial officer Hugh Johnston told CNBC.

Bottles of Pepsi are pictured at a grocery store in Pasadena, California, July 11, 2017. REUTERS/Mario Anzuoni

The transaction, already approved by the boards of directors of both the companies, will be paid for by Pepsi with existing cash on hand. The final deal is still subject to standard regulatory approvals, as well as the vote of SodaStream shareholders. Closure of the deal is expected by January, the companies said.

Shares of PepsiCo closed 0.62 higher during Friday trade on Nasdaq. After closing 0.84 percent higher on Friday, SodaStream shares on Nasdaq (it is also traded in Tel Aviv) had gained over 10 percent during pre-market trade Monday, after the announcement.