PepsiCo today (Aug. 20) announced it will acquire SodaStream International Ltd., maker of "Sparkling Water Makers," for $3.2 billion in cash.

SodaStream was an early entry in the home-soda market. Its machine allows consumers to "transform ordinary tap water into sparkling water and flavored sparkling water in seconds." Regarding that last part: At the moment, SodaStream sells generic flavors for its carbonated water – "lemon fruit drops, raspberry fruit drops, diet cola and "Dr. Pete" – but those could become branded PepsiCo products.

PepsiCo offered $144 per share in cash for the Israel-based company, 32 percent above its 30-day average price.

In addition to the synergies and business talk, Indra Nooyi, PepsiCos chairman and CEO for another six weeks, noted SodaStream fits well into her companys "Performance with Purpose" philosophy by "offering consumers the ability to make great-tasting beverages while reducing the amount of waste generated. ... Together, we can advance our shared vision of a healthier, more-sustainable planet."

And while it does help Pepsico reach consumers in their homes, rather than in grocery or convenience stores, it is a doubling-down on carbonated soft drinks, sales of which have flattened lately.

Daniel Birnbaum, SodaStream CEO, said the deal makes his company "PepsiCos beachhead for at-home preparation to empower consumers around the world with additional choices. I am excited our team will have access to PepsiCos vast capabilities and resources to take us to the next level."

Ramon Laguarta, who takes over as PepsiCos CEO on Oct. 3, noted, "SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio, while catalyzing our ability to offer personalized in-home beverage solutions around the world."

The acquisition has been unanimously approved by the boards of directors of both companies but requires a SodaStream shareholder vote and some regulatory approvals. Closing is expected by January 2019.

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