NEW DELHI (CNNMoney) — Pepsi is buying one of the world’s top sparkling water brands.
The drinks company announced Monday that it would take over SodaStream, the Israeli company that sells do-it-yourself seltzer makers, in a deal worth $3.2 billion.
The move will boost Pepsi’s efforts to shift from its traditional soft drinks business into to offering healthier options.
SodaStream’s products, marketed as a healthy alternative to sugary sodas, fit Pepsi’s goal of “making more nutritious products while limiting our environmental footprint,” Pepsi CEO Indra Nooyi said in a statement. “Together, we can advance our shared vision of a healthier, more sustainable planet.”
The deal will be funded using Pepsi’s cash on hand and has been unanimously approved by the boards of both companies. It is expected to close by January 2019, pending a SodaStream shareholder vote and certain regulatory approvals.