Buy N.Y-based PepsiCo introduced that it has closed the acquisition of poppi, Austin, Texas, for $1.95 billion, together with $300 million of anticipated money tax advantages for a internet buy value of $1.65 billion. The transaction additionally features a performance-based earnout contingent on reaching sure efficiency metrics.
This acquisition marks a major step in PepsiCo’s ongoing transformation of its portfolio, reinforcing its dedication to assembly evolving shopper preferences for great-tasting, purposeful merchandise. poppi, a fast-growing prebiotic soda model, is amongst PepsiCo’s latest acquisitions, together with Siete and Sabra, geared toward aligning with shoppers’ trendy wellness priorities.
“poppi represents a compelling strategic match inside our short- and long-term imaginative and prescient for the way forward for drinks,” mentioned Ram Krishnan, CEO of PepsiCo Drinks U.S., in a press release. “Its fast progress, robust shopper engagement, and differentiated purposeful positioning make it a dynamic addition to our portfolio. We’re excited to scale poppi’s momentum and unlock new progress by our capabilities — we’re simply getting began.”
On a mission to modernize soda for the following era, poppi is a fast-growing purposeful soda model made with prebiotics, fruit juice, and apple cider vinegar, providing a low-calorie drink with not more than 5 grams of sugar in every serving.
“PepsiCo’s perception within the poppi model is an amazing validation of the work we’ve executed to advance our mission,” mentioned Chris Corridor, CEO of poppi, in a press release. “Their partnership and assets will probably be instrumental as we scale to our subsequent part of progress. We’re extremely grateful to our passionate group and sit up for welcoming much more shoppers into the poppi portfolio.”
Centerview Companions LLC acted as lead monetary adviser to PepsiCo, and J.P. Morgan Securities LLC, additionally served as a monetary advisor to PepsiCo. Cravath, Swaine & Moore LLP acted as authorized adviser to PepsiCo, and Davis Polk & Wardwell LLP acted as tax counsel to PepsiCo. Goldman Sachs & Co. LLC acted as monetary adviser to poppi, and Cooley LLP acted as authorized adviser to poppi
