Overview

• PepsiCo purchased $585 million of newly issued convertible preferred shares in Celsius, raising its stake to 11% and extending the conversion period on its 2022 preferred investment.
• PepsiCo will distribute Celsius-owned Alani Nu in the U.S. and Canada, while Celsius acquires rights to the Rockstar Energy brand in those markets as PepsiCo retains Rockstar internationally.
• PepsiCo will nominate an additional director to Celsius’s board, expanding its governance influence without a full takeover.
• PepsiCo will lead U.S. distribution for the Celsius portfolio as Celsius manages the Celsius, Alani Nu, and Rockstar brands as the company’s strategic energy captain in the market.
• Celsius shares rose 5.3% to $62.88 at Friday’s close following the announcement, while PepsiCo shares were little changed.