PepsiCo Invests In Fitness Energy Drink Maker Celsius

  • Celsius Holdings Inc CELH has signed a distribution agreement with PepsiCo Inc PEP. In addition, PEP will make a net cash investment of $550 million to Celsius in exchange for convertible preferred stock.
  • As part of the investment, which equates to an estimated 8.5% ownership in Celsius, PEP will nominate a director to serve on Celsius' Board of Directors.
  • The distribution agreement initially transitions Celsius' current U.S. distribution to PepsiCo's capabilities.
  • The long-term U.S. distribution agreement is effective on August 1, 2022, and includes retail and food service channels. 
  • PepsiCo will also become the preferred distribution partner globally for Celsius.
  • Price Action: CELH shares are trading higher by 12.6% at $100.17, and PEP is up 0.85% at $176.46 on the last check Monday.
  • Photo Via Company
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: M&ANewsManagementMoversTrading IdeasGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!