PepsiCo Completes Purchase Of Israel’s SodaStream 

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PepsiCo announced Wednesday it had completed its acquisition of Israeli firm SodaStream, whose command of the fizzy water market appealed to the US beverage giant as demand falls for sugar-laden soft drinks.

PepsiCo said in August that it was buying the Israeli company, which makes machines to carbonate home tap water, for $3.2 billion in the top American food and beverage company’s largest acquisition in nearly a decade.

“With its customizable options, SodaStream empowers consumers to personalize their preferred beverage in an environmentally friendly way and provides PepsiCo with a significant presence in the at-home marketplace,” PepsiCo CEO Ramon Laguarta said in a statement. “Together with SodaStream, I’m confident we can accelerate progress on our shared goal of curbing plastic waste and building a more sustainable future.”

Read more at i24NEWS.

{Matzav.com}

12 COMMENTS

  1. Notice how israelis develop great technologies, then sell out for a fraction of the earning potential, taking away Israeli jobs in the process. Did the suicidal Judenrat mentality penetrate even the technology sector?

      • If Sodastream is successful and going to expand, Pepsi is not going to expand in Israel, probably in China or some other slave wages place – so here is just one example of Israeli manufacturing jobs taken away.

      • Another way that Israeli jobs are taken away: there is a high probability that PepsiCo did a strategic move and bought out the competition for the purpose of shutting it down. Shot down together with the Israeli jobs.

  2. The acquisition price $144 per share in cash, was a 32% premium to the 30-day volume weighted average share price of SodaStream after they had their best quarter ever. Please know the facts before you say ridiculous comparisons.
    To quote Fortune magazine ” SodaStream will be run as an independent division, and its current management team will remain intact—a setup both parties said was essential in order for the Israeli company to maintain its entrepreneurial culture.” So, on both accounts, you are completely off.

    • Dear m r, learn to think long term. SodaStream had a potential to take a huge bite out of the soft drinks and health drinks market. With a proper marketing strategy, the company could have been worth tens of billions or even more. The current share price reflects current market share, which takes just one small step to improve with hiring a new strategic marketing team to match the already existing great product. Besides, there are no guarantees that PepsiCo will keep its promise to let SodaStream run itself, or even that PepsiCo is not going to shut down SodaStream altogether, as SodaStream is a threat to PepsiCo’s entire business model.

      • Actually, after many years of trying, Sodastream changed their business model to a sparkling water company because the barriers to entry into the soft drink market were to high, due to high marketing costs and pricing constraints. By doing this they increased earnings to 74m in 2017 from 12m in 2015.

      • Also, barring asymmetric information, market prices reflect future earning potential. That is the reason many currently non profitable companies such as Netflix have extremely high valuations. So unless you have inside information that Wall Street doesn’t know, you are probably wrong. There were no reports that this was a hostile takeover so management at sodastream did what is best for their shareholders, which the ultimate purpose of a company.

    • why would israel compete with larger countries? israel develops tech. the same reason why they dont really manufacture a lot of tech but develope it. it requires a large industrial base to!

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