PepsiCo said Monday it’s acquiring the prebiotic soda brand Poppi for $1.95 billion.
The acquisition gives PepsiCo a fast-growing brand in the popular functional beverage category.
“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,” PepsiCo Chairman and CEO Ramon Laguarta said in a statement.
PepsiCo said the transaction includes $300 million of anticipated cash benefits, bringing the net purchase price to $1.65 billion.
Allison Ellsworth, the co-founder of Austin, Texas-based Poppi, said the combination with PepsiCo will expand Poppi’s reach.
“We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes Poppi so special while supporting our next phase of growth and innovation,” Ellsworth said in a statement.