PepsiCo closes acquisition of poppi for $1.95B

PepsiCo (PEP) announced that it has closed the acquisition of poppi for $1.95B, including $300M of anticipated cash tax benefits for a net purchase price of $1.65B. The transaction also includes a performance-based earnout contingent on achieving certain performance metrics. On a mission to modernize soda for the next generation, poppi is a fast-growing functional soda brand made with prebiotics, fruit juice, and apple cider vinegar – offering a refreshing, low-calorie drink with no more than five grams of sugar per serving. poppi has taken a community- and culture-first approach – from vibrant packaging to a strong social media presence, viral TikTok campaigns, and influencer partnerships – all of which have cultivated a loyal community and effectively engaged Gen Z and millennial audiences. Centerview Partners acted as lead financial advisor to PepsiCo, and J.P. Morgan Securities also served as a financial advisor to PepsiCo. Cravath, Swaine & Moore acted as legal advisor to PepsiCo, and Davis Polk & Wardwell acted as tax counsel to PepsiCo. Goldman Sachs & Co. acted as financial advisor to poppi, and Cooley acted as legal advisor to poppi.