Market sources say PepsiCo and Coca-Cola are in talks to buy SodaStream but PepsiCo CEO Indra Nooyi issued a denial.
Home carbonated beverages maker SodaStream International Ltd. (Nasdaq: SODA) is holding talks with soft drink giants PepsiCo Inc. (NYSE: PEP) and the Coca-Cola Company (NYSE: KO). The talks began about a month ago with each of the companies and are in early stages and it is not yet clear whether an acquisition or strategic cooperation is being considered.
However, PepsiCo CEO Indra Nooyi claimed that it was the "first time" she had heard about the talks.
SodaStream, managed by CEO Daniel Birnbaum, has a market cap of $1.43 billion. However, following reports of the talks, the company's share price, which closed on Nasdaq last night at $69.35, rose more than 20% during German floor trading this morning but fell back following pepsiCo's denials.
SodaStream said that it does not comment on speculation and rumors.
SodaSteam has eight plants in Israel and ten more factories worldwide and exports products to 45 countries. The company saw revenue rise 55% in 2012 to $440 million. SodaStream sees 25% revenue and profit growth in 2013. Profit in 2012 was $50 million.
Much of SodaStream's marketing has revolved around slamming the amount of plastic garbage generated by the disposable bottles of Coca Cola, PepsiCo and other soft drink manufacturers, while the Israeli company emphasizes the environmental friendliness of its recyclable bottles.
Published by Globes [online], Israel business news - www.globes-online.com - on June 6, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
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