PepsiCo Inc. (MASDAQ:PEP) is increasing its holding in Celsius Holdings Inc. to 11% through a $585 million investment in convertible preferred shares, according to a Bloomberg report on Friday.
The agreement, expected to be announced on Friday, also includes Celsius acquiring PepsiCo’s Rockstar Energy brand in the United States and Canada.
In addition, Alani Nu, the women-focused energy drink recently purchased by Celsius, will transition to PepsiCo’s distribution network in both countries, aiming to accelerate growth through broader retail access.
As part of the arrangement, Celsius will serve as PepsiCo’s strategic energy partner in the U.S., managing the Celsius, Alani Nu, and Rockstar Energy brands, while PepsiCo will oversee distribution of the Celsius portfolio in that market.
This follows PepsiCo’s initial $550 million investment in 2022, which gave the company an 8.5% stake in Celsius via preferred stock.
The new agreement also extends the conversion timeline of the original investment to align with the terms of the expanded stake and allows PepsiCo to nominate an additional board member at Celsius.
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