PepsiCo is reportedly expected to close the acquisition deal in the coming days. PepsiCo has also entered into an agreement, which will provide approximately $0.7 billion of payments related to future tax benefits associated with the transaction, payable over up to 15 years. What does the Rockstar acquisition mean for PepsiCo? PepsiCo has entered into an agreement to acquire Rockstar Energy Beverages for $3.85 billion. Rockstar Energy Drink acquired by PepsiCo . PepsiCo Inc on Wednesday made its biggest bet in the energy drinks market with a $3.85 billion deal to buy Rockstar Energy Beverages, opening a new front in its long-running battle with Coca-Cola Co. "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 PepsiCo Chairman and CEO, Ramon Laguarta. Before the Rockstar acquisition, PepsiCo used its Mountain Dew platform to brand its energy drinks, such as Kickstart, Game Fuel and AMP. Pepsi has had a … I'm proud of what we built and how we've changed the game in the energy space.". Hangzhou Haomusi Food Co . The deal also opens the door to Pepsi introducing new energy drinks, sources said. Distribution Deal Renewed in 2018. Goldman Sachs & Co. LLC acted as financial advisor to Rockstar, with King & Spalding acting as Rockstar's legal counsel. The Federal Trade Commission has paved the way for PepsiCo to buy drink company Rockstar Energy for $3.85 billion, The Post has learned. "We have had a strong partnership with PepsiCo for the last decade, and I'm happy to take that to the next level and join forces as one company," said Russ Weiner, Rockstar's founder and creator of the world's first 16oz energy drink. Commenting on the acquisition, PepsiCo chairman/CEO Ramon Laguarta referred to Pioneer Foods as a “highly complementary” business and that it would form “an important part of our strategy to not only expand in South Africa, but further into sub-Saharan Africa, as well.” The acquisition deal was announced by the companies in March during the novel coronavirus pandemic. Do Not Sell My Personal Information. Rockstar Energy Drink . PepsiCo does not expect the transaction to be material to its revenue or earnings per share in 2020. About PepsiCo Rockstar, founded in 2001, produces beverages that are designed for those who lead active lifestyles from athletes to rock stars. PepsiCo, Rockstar Energy Beverages, Acquisition, Energy Drinks, Mountain Dew, Kickstart, GameFuel, AMP 12 Mar 2020 --- Expanding within the fast growing energy category, PepsiCo has entered into an agreement to acquire Rockstar Energy Beverages (“Rockstar”), a sugar-free and low sugar energy drink maker, for US$3.85 billion. Rivals include Red Bull and Monster, which are part-owned by Coca-Cola. PepsiCo has entered into an agreement to acquire Rockstar Energy Beverages (Rockstar), the energy drink maker, for $3.85bn. PURCHASE, NY. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales. PepsiCo, in contrast to … The FTC (Federal Trade Commission) has reportedly approved the acquisition of Rockstar Energy by PepsiCo for the sum of $3.85 billion. To read this article and more, including our archive of drinks industry news, analysis & comment pieces from the last 20 years, try just … 3,833, © 2020 NYP Holdings, Inc. All Rights Reserved Andy Morton | 3 December 2020. Hangzhou Haomusi Food Co acquired by PepsiCo . On March 11, PepsiCo announced an agreement to buy Rockstar Energy for $3.85 billion plus $700 million worth of tax benefits payable over 15 years (BD Email News Alert 3/11/20). With an arrangement that would strengthen its commitment to energy drinks, PepsiCo will buy Rockstar Energy in a $3.85 billion deal. Topline: PepsiCo will buy Rockstar Energy Drinks in a $3.85 billion deal, according to multiple reports Wednesday, further shoring up an existing relationship between the … PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Before the Rockstar acquisition, PepsiCo used its Mountain Dew platform to brand its energy drinks, such as Kickstart, Game Fuel and AMP. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first half of 2020. "PepsiCo shares our competitive spirit and will invest in growing our brand even further. Gibson, Dunn & Crutcher LLP acted as lead counsel to PepsiCo, and Davis Polk & Wardwell LLP as U.S. tax and antitrust counsel. Centerview Partners LLC acted as financial advisor to PepsiCo. PepsiCo . Sitemap Veterans are entitled to free hearing aids through the VA, This story has been shared 49,666 times. Coca-Cola, which owns a stake in Monster and helps it with international distribution, began selling Coca … PepsiCo has agreed to acquire energy drink manufacturer Rockstar Energy Beverages (‘Rockstar’) for $3.85 billion, as it aims to strengthen its position in the category. Mar 11, 2020 . By acquiring Rockstar, PepsiCo … Privacy Notice The regulator approved the deal — announced last month during the coronavirus pandemic — on Friday and the company is expected to close on it in the coming days, sources said. PepsiCo's acquisition of Rockstar Energy marks another challenge to Monster. PepsiCo (NYSE:PEP) is gearing up to capture growth in the energy drinks market by acquiring Rockstar Energy Beverages. 2. March 18, 2020. ... View all 29 acquisitions from this search. "Winning with Purpose" reflects our ambition to win sustainably in the marketplace and embed purpose into all aspects of the business. PepsiCo’s $3.85 billion acquisition of Rockstar displays a strategic diversification into the functional beverage market following their similar acquisitions of Sodastream and Pioneer Food Group. 49,666, This story has been shared 8,984 times. New Details: PepsiCo-Rockstar Acquisition. Such risks and uncertainties include, but are not limited to: future demand for PepsiCo's products, as a result of changes in consumer preferences or otherwise; changes in laws related to the use or disposal of plastics or other packaging of PepsiCo's products; changes in, or failure to comply with, applicable laws and regulations; imposition or proposed imposition of new or increased taxes aimed at PepsiCo's products; imposition of labeling or warning requirements on PepsiCo's products; PepsiCo's ability to compete effectively; political conditions, civil unrest or other developments and risks in the markets where PepsiCo's products are made, manufactured, distributed or sold; PepsiCo's ability to grow its business in developing and emerging markets; uncertain or unfavorable economic conditions in the countries in which PepsiCo operates; the ability to protect information systems against, or effectively respond to, a cybersecurity incident or other disruption; damage to PepsiCo's reputation or brand image; water scarcity; business disruptions, including health epidemics or pandemics or other contagious outbreaks, such as the recent coronavirus; failure to successfully complete, integrate or manage acquisitions, such as the proposed acquisition of Rockstar, and joint ventures into PepsiCo's existing operations or to complete or effectively manage divestitures or refranchisings; changes in estimates and underlying assumptions regarding future performance that could result in an impairment charge; loss of, or a significant reduction in sales to, any key customer; disruption to the retail landscape, including rapid growth in the e-commerce channel and hard discounters; climate change or legal, regulatory or market measures to address climate change; other factors that may adversely affect the price of PepsiCo's publicly traded securities and financial performance; and risks related to the proposed acquisition, including the inability to satisfy the conditions to the closing of the proposed acquisition and risks that the proposed acquisition disrupts current plans and operations of Rockstar and the potential difficulties in employee retention as a result of the proposed transaction. The addition of the Rockstar brand will add to PepsiCo’s line … 8,984, This story has been shared 3,833 times. The … Regulators had been reviewing the acquisition to be sure it wouldn’t reduce competition. Rockstar products are available in over 30 flavors at convenience and grocery outlets in over 30 countries. Thanks for contacting us. Terminology such as "believe," "expect," "intend," "estimate," "project," "anticipate," "will," or similar statements or variations of such terms are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. According to the terms of the agreement, PepsiCo … 11, 2020 at 11:00 am PepsiCo announced today an agreement to acquire energy drink brand Rockstar … "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 PepsiCo Chairman and CEO, Ramon Laguarta. PURCHASE, N.Y. — PepsiCo Inc. will purchase Rockstar Energy Beverages for $3.85 billion, giving it a larger stake in the energy drink market. PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. Post was not sent - check your email addresses! Combined Circular to Pioneer Foods Shareholders. Sorry, your blog cannot share posts by email. Mountain Dew’s Kickstart, while often is considered an energy drink, is advertised as a breakfast beverage and has less caffeine than products like Red Bull. For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. PepsiCo generated more than $67 billion in net revenue in 2019, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo owns Mountain Dew Kickstart and is also a partner in Starbucks energy drinks. Your California Privacy Rights The Federal Trade Commission has paved the way for PepsiCo to buy drink company Rockstar Energy for $3.85 billion, The Post has learned. "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.". Statements in this release that are "forward-looking statements" are based on currently available information, operating plans and projections about future events and trends. PepsiCo has had a distribution agreement with Rockstar in North America since 2009. As Rockstar’s distributor, PepsiCo had been barred from developing competing brands. Although this decision compliments the current consumer trend to avoid sugary sodas, PepsiCo faces many risks in their decision to acquire Rockstar. "As we work to be more consumer-centric and capitalize on rising demand in the functional beverage space, this highly strategic acquisition will … PepsiCo Acquires Rockstar Energy for $3.85 Billion Martín Caballero Mar. Vital Pharmaceuticals files lawsuit against PepsiCo in Bang Energy distribution feud. Do Not Sell My Personal Information, Your California Privacy Rights Speculation Now Turns to Bang. PURCHASE, N.Y., March 11, 2020 /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP) ("PepsiCo") today announced that it has entered into an agreement to acquire Rockstar Energy Beverages ("Rockstar"), the popular energy drink maker, for $3.85 billion. For more information, visit www.pepsico.com. We've received your submission. 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Your Ad Choices PepsiCo (PEP) is planning to acquire Rockstar Energy Beverages, the maker of the Rockstar Energy Drink line, in a $3.85 billion deal.More From InvestorPlace 2 Toxic Pot … But Rockstar’s market share has fallen in recent years from almost 20 percent to less than 10 percent, which helped alleviate the FTC’s concerns, a source said. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in any such forward-looking statement. PURCHASE, N.Y., March 11, 2020 /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP) ("PepsiCo") today announced that it has entered into an agreement to acquire Rockstar Energy Beverages ("Rockstar"), the popular energy drink maker, for $3.85 billion. PepsiCo Cautionary Statement Waitress takes home $2K tip after claiming she was stiffed by restaurant, Family speaks out after boy shoots himself during Zoom class, Team booted from HS football playoffs after vicious ref attack. Terms of Use PURCHASE, N.Y. — PepsiCo, Inc. has reached an agreement with Pioneer Foods Group Ltd., Johannesburg, South Africa, to acquire the company for approximately $1.7 billion. Rockstar trails behind Red Bull and Monster in the energy drink market, but the acquisition still looks like a smart move for PepsiCo. Rockstar founder Russell Weiner, son of conservative talk show host Michael Savage, is not expected to play a big role under the new ownership, the source added. Russell Goldencloud Weiner is the latest beneficiary with PepsiCo Inc. ’s planned acquisition of Rockstar Energy Beverages for $3.9 billion. In addition to Rockstar, PepsiCo's energy portfolio includes Mountain Dew's Kickstart, GameFuel, and AMP. PepsiCo has reached a deal to buy the Rockstar energy drink maker for $3.85 billion, the food and beverage giant said Wednesday. PepsiCo . PepsiCo to buy Rockstar Energy for $3.8 billion. Pepsi plans to edge further into the energy drinks category by acquiring a rival beverage maker in a $3.85 billion deal. PepsiCo is making inroads in the energy drink space by reaching an agreement to buy Rockstar, the energy drink maker founded in 2001 and distributed in 30 countries, in … PepsiCo is splashing out $3.85bn to buy Rockstar Energy Beverages. By Steven Skomra, Dylan Barnacle, Zach Trotzky (Georgetown University), Christopher Gvenetadze, and Alessandro Carleo (Bocconi University) Overview of the deal PepsiCo is set to acquire Rockstar Energy in attempts to increase their presence in the energy drink market. He … — PepsiCo, Inc. plans to acquire Rockstar Energy Beverages for $3.85 billion. 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