"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 PepsiCos capabilities to both accelerate Rockstars performance and unlock our ability to expand in the category with existing brands such as Mountain Dew," said PepsiCo Chairman and CEO, Ramon Laguarta. "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."

Rockstar, founded in 2001, produces beverages that are designed for those who lead active lifestyles. Rockstar products are available in over 30 flavours 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, PepsiCos energy portfolio includes Mountain Dews Kickstart, GameFuel, and AMP. 

"We have had a strong partnership with PepsiCo for the last decade, and Im happy to take that to the next level and join forces as one company," said Russ Weiner, Rockstars founder. "PepsiCo shares our competitive spirit and will invest in growing our brand even further. Im proud of what we built and how weve changed the game in the energy space." 

PepsiCo does not expect the transaction to be material to its revenue or earnings per share in 2020. The transaction is subject to customary closing conditions.