PepsiCo has signed a definitive agreement to acquire probiotic soda brand Poppi for US$1.95 billion.
The transaction amount includes $300 million of anticipated cash tax benefits for a net purchase price of $1.65 billion.
“We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers,” said Ramon Laguarta, PepsiCo chairman and CEO.
“More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. Poppi is a great complement to our portfolio transformation efforts to meet these needs.”
The agreement also includes a further potential earnout consideration subject to reaching certain performance milestones within a specified period after the transaction’s closing.
Poppi, which combines apple cider vinegar with natural fruit flavours and probiotics, gained attention after appearing on the reality TV show Shark Tank in 2018.
