LONDON (ShareCast) - (Sharecast News) - PepsiCo Inc. has agreed to buy Rockstar Energy Beverages for $3.85bn, expanding its presence in the energy drink market.
PepsiCo has had a distribution agreement with Rockstar in North America since 2009.

The company's chairman and chief executive officer, 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."

The deal - due to close in the first half of the year - is not expected to have a material impact on PepsiCo's revenue or earnings per share in 2020.

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