PepsiCo in talks to buy Israel's SodaStream for $2 bn: report
06 Jun 2013
PepsiCo is in talks to buy Israel's SodaStream International, a maker of home carbonated drinks system, for $2 billion, Israeli financial newspaper Calcalist today reported.
New York-based PepsiCo has already tabled its offer through Goldman Sachs, and may be willing to pay more than $2 billion, the report said.
Share price of SodaStream, the world's largest maker of Home Carbonation Systems, closed on the Nasdaq yesterday at $69.35, giving it a market value of $1.4 billion.
The report also said that SodaStream is exploring options like a deal with PepsiCo's rival Coca Cola Co before entering into advanced talks with PepsiCo.
Founded in 1903, Airport City, Israel-based SodaStream manufactures beverage carbonation systems, which allows consumers to easily transform ordinary tap water instantly into carbonated soft drinks and sparkling water.
It offers convenience by eliminating the need to carry bottles home from the supermarket, to store bottles at home or to regularly dispose of empty bottles.
Its products are available at more than 55,000 retail stores in 43 countries including home & electrical appliance stores, hypermarkets, supermarkets, department stores, convenience stores, DIY, specialty and "green" stores, water specialists & dealers, as well as online and in catalogs.
The company has 22 production sites in Israel and around the world, with two major factories in Negev and Alon Tavor in Israel. The company is building the Negev new plant designed to employ a thousand workers.