Global food and beverage company PepsiCo has brokered a deal to acquire Rockstar Energy Beverages in a deal valued $3.85bn.

Established in 2001, Rockstar produces energy drinks in more than 30 different flavours, sold in convenience and grocery outlets in more than 30 countries.

PepsiCo chairman and CEO Ramon Laguarta said: “As we work to be more consumer-centric and capitalise on rising demand in the functional beverage space, this highly strategic acquisition will enable us to leverage PepsiCo’s capabilities to both accelerate Rockstar’s performance and unlock our ability to expand in the category with existing brands such as Mountain Dew.

“Over time, we expect to capture our fair share of this fast-growing, highly profitable category and create meaningful new partnerships in the energy space.”

Additionally, PepsiCo has agreed to provide nearly $0.7bn of payments related to future tax benefits associated with the transaction that will be payable over five years.

PepsiCo signed a distribution agreement with Rockstar in North America in 2009.

The deal, subject to customary closing conditions and regulatory approvals, should close in the first half of 2020.

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Upon deal completion, Rockstar will become part of PepsiCo’s energy portfolio, which includes Mountain Dew’s Kickstart, GameFuel, and AMP.

Rockstar founder Russ Weiner said: “We have had a strong partnership with PepsiCo for the last decade, and I’m happy to take that to the next level and join forces as one company.

“PepsiCo shares our competitive spirit and will invest in growing our brand even further. I’m proud of what we built and how we’ve changed the game in the energy space.”