PepsiCo Invests In Fitness Energy Drink Maker Celsius

by Shivani Kumaresan, Benzinga Staff Writer

August 1, 2022 2:19 PM | 1 min read | Make a Comment

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