PepsiCo has agreed to acquire Poppi, a prebiotic soda brand, for US$1.95 billion. The move is part of the beverage giant’s expansion into the better-for-you market. The Poppi brand began as a start-up, which shot to fame after an appearance on the television business competition Shark Tank. PepsiCo’s shares were up 1.8% today. The transaction includes US$300 million of anticipated cash tax benefits for a net purchase price of US$1.65 billion. An additional potential earnout consideration is also set and subject to achieving certain performance milestones within a specified period.
