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PepsiCo (PEP, Financial) confirmed a strategic deal to acquire Poppi for $1.95 billion, including $300 million in anticipated cash tax benefits for a net purchase price of $1.65 billion, according to a Monday press release.
The transaction includes an additional earnout component contingent on meeting specific performance milestones within a designated period after closing. It remains subject to customary closing conditions and regulatory approval.
Poppi, founded by Stephen and Allison Ellsworth in 2015 and popularized on Shark Tank, produces a line of prebiotic sodas that combine fruit juice, apple cider vinegar, and inulin prebiotics. The beverages offer a refreshing taste with just five grams of sugar and twenty-five calories per serving, catering to growing health-conscious consumer trends.
This is another example of PepsiCo's ongoing strategy to broaden its portfolio and go where it will find new trends in healthier beverage options. Industry watchers see the deal as a timely move in line with evolving consumer preferences, while analysts said the competitive landscape in the prebiotic soda segment. Updates will be forthcoming as the transaction goes on.
This article first appeared on GuruFocus.