PepsiCo is set to acquire Rockstar Energy Beverages, the popular energy drink manufacturer, for $3.85bn, approximately £3.09bn.
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.'
Rockstar, founded in 2001, produces beverages that are designed for those who lead active lifestyles from athletes to rock stars. Its products are available in over 30 flavors at convenience and grocery outlets in over 30 countries.
PepsiCo has had a distribution agreement with Rockstar in North America since 2009. In addition to Rockstar, PepsiCo's energy portfolio includes Mountain Dew's Kickstart, GameFuel, and AMP.
Russ Weiner, Rockstar's founder and creator of the world's first 16oz energy drink, 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.'