Vending

PepsiCo invests in Celsius, inks distribution pact

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August 1, 2022

PepsiCo Inc. has made a $550 million investment in Celsius Holdings Inc. and signed a long-term strategic distribution arrangement with the energy drink maker, according to a press release.

The distribution agreement transitions Celsius' current U.S. distribution to PepsiCo's best-in-class capabilities. As part of the transaction, PepsiCo will also nominate a director to serve on Celsius' board of directors.

PepsiCo's $550 million net cash investment in Celsius is in exchange for convertible preferred stock.

Shares underlying the transaction were priced at $75 per share, or approximately 7.33 million shares, which equates to an estimated 8.5% ownership in Celsius on an as-converted basis. The preferred shares are entitled to a 5% annual dividend.