PepsiCo acquires Rockstar Energy Beverages for $3.85 billion
PepsiCo has agreed to acquire Rockstar Energy Beverages, the popular energy drink maker, for $3.85 billion.
PepsiCo has agreed to acquire Rockstar Energy Beverages, the popular energy drink maker, for $3.85 billion.
Rockstar, founded in 2001, produces beverages that are available in more than 30 flavors at convenience and grocery outlets in over 30 countries. PepsiCo has had a distribution agreement with Rockstar in North America since 2009. In addition to Rockstar, PepsiCo’s energy portfolio includes Mountain Dew’s Kickstart, GameFuel, and AMP.
“As we work to be more consumer-centric and capitalize on rising demand in the functional beverage space, this highly strategic acquisition will enable us to leverage PepsiCo’s capabilities to both accelerate Rockstar’s performance and unlock our ability to expand in the category with existing brands such as Mountain Dew,” said Ramon Laguarta, PepsiCo chairman and CEO. “Over time, we expect to capture our fair share of this fast-growing, highly profitable category and create meaningful new partnerships in the energy space.”
PepsiCo has also entered into an agreement, which will provide approximately $700 million of payments related to future tax benefits associated with the transaction, payable over up to 15 years. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first half of 2020.