PepsiCo Completes Acquisition of Poppi for $1.95 Billion

Deal News | May 20, 2025 | EIN

PepsiCo Completes Acquisition of Poppi for $1.95 Billion

PepsiCo, the multinational food and beverage corporation, has finalized its acquisition of poppi, a prebiotic carbonated beverage brand, in a deal valued at $1.95 billion. The transaction, as outlined in a PepsiCo press release, is structured to include $300 million in tax benefits with a net price of $1.65 billion, alongside potential future remunerations contingent on performance benchmarks. This strategic acquisition is part of PepsiCo's broader initiative to diversify and augment its brand portfolio, following previous acquisitions like Siete and Sabra. Prominent advisory firms such as J.P. Morgan Securities LLC and Centerview Partners LLC were engaged on behalf of PepsiCo, whereas Goldman Sachs & Co. LLC and Cooley LLP assisted poppi. Headquartered in Austin, Texas, poppi is renowned for its innovative functional beverages, incorporating prebiotics, fruit juices, and apple cider vinegar, distinguished by low sugar content. PepsiCo, based in Harrison, New York, garners the majority of its revenue from the United States with substantial market presence in Mexico, Canada, the United Kingdom, and Brazil.

Sectors

  • Food and Beverage
  • Mergers and Acquisitions

Geography

  • United States – Both PepsiCo and poppi are headquartered in the United States, making it the primary geography for this transaction.

Industry

  • Food and Beverage – The acquisition involves PepsiCo, a leading corporation in the soft drink and snack food sector, expanding its beverage offerings through the purchase of poppi.
  • Mergers and Acquisitions – This article discusses the completed acquisition of poppi by PepsiCo, highlighting the industry dynamics of corporate consolidations and strategic expansion.

Financials

  • $1.95 billion – Total value of the acquisition deal for poppi by PepsiCo.
  • $1.65 billion – Net price for the acquisition excluding tax benefits.
  • $300 million – Tax benefits included in the acquisition deal.

Participants

NameRoleTypeDescription
PepsiCo, Inc.AcquirerCompanyA leading American multinational corporation in the food and beverage industry.
PoppiTargetCompanyA fast-growing brand of functional carbonated drinks known for its innovative use of prebiotics and low sugar content.
J.P. Morgan Securities LLCAdvisorCompanyFinancial advisory services for PepsiCo.
Centerview Partners LLCAdvisorCompanyFinancial advisory services for PepsiCo.
Goldman Sachs & Co. LLCAdvisorCompanyFinancial advisory services for poppi.
Cooley LLPAdvisorCompanyLegal advisory services for poppi.