PepsiCo to acquire Poppi for US$1.95 billion
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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.
Questions & Answers
Q.What is the final acquisition cost for PepsiCo to purchase Poppi?
What is the final acquisition cost for PepsiCo to purchase Poppi?
The net purchase price for PepsiCo to acquire Poppi is US$1.65 billion. This amount reflects the US$1.95 billion transaction value minus US$300 million in anticipated cash tax benefits.
Q.What is the reason behind PepsiCo's decision to acquire Poppi?
What is the reason behind PepsiCo's decision to acquire Poppi?
PepsiCo aims to offer more positive choices to consumers and meet their growing interest in health and wellness. The acquisition aligns with their strategy of evolving their food and beverage portfolio through strategic acquisitions.
Q.What kind of product is Poppi and how did it gain prominence?
What kind of product is Poppi and how did it gain prominence?
Poppi is a probiotic soda brand that combines apple cider vinegar with natural fruit flavours and probiotics. It gained attention after appearing on the reality TV show Shark Tank in 2018.
Q.Are there any additional payments PepsiCo might make for Poppi?
Are there any additional payments PepsiCo might make for Poppi?
Yes, the agreement includes a potential earnout consideration. This is subject to Poppi reaching certain performance milestones within a specified period after the transaction closes.
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