PepsiCo to acquire Rockstar Energy Beverages

PepsiCo, Inc. plans to acquire Rockstar Energy Beverages for $3.85 billion. The addition of the Rockstar brand will add to PepsiCo’s line of energy beverages, which include the Mountain Dew Kickstart, GameFuel and Amp brands.

”As we work to be more consumer-centric and capitalize on rising demand in the functional beverage space, this highly strategic acquisition will enable us to leverage PepsiCo’s capabilities to both accelerate Rockstar’s performance and unlock our ability to expand in the category with existing brands such as Mountain Dew,” said Ramon Laguarta, chairman and chief executive officer of PepsiCo. ”Over time, we expect to capture our fair share of this fast-growing, highly profitable category and create meaningful new partnerships in the energy space.”

PepsiCo has had a distribution agreement with Rockstar since 2009. The energy beverage company’s products are available in more than 30 flavors and sold in 30 countries.

The acquisition is not expected to be material to PepsiCo’s revenue or earnings per share in 2020, according to the company. The transaction is subject to customary closing conditions and expected to close in the first half of 2020.

Source: www.foodbusinessnews.net