Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, August 24, 2018

Article Excerpt

PEPSICO INC., $112.15, Nasdaq symbol PEP, is the world’s second-largest soft-drink maker after Coca-Cola. Its other brands include Frito-Lay snack foods, Gatorade sports drinks, Tropicana fruit juices and Quaker Oats cereals. The company has agreed to acquire SodaStream International Inc. (Nasdaq symbol SODA). Based in Israel, that firm makes machines that let consumers make their own soft drinks by combining carbonated water with flavoured syrup pods. PepsiCo will pay $144.00 a share in cash for SodaStream, for a total price of $3.2 billion. That’s equal to 2% of its current $158.6 billion market cap (the total value of all shares outstanding). The purchase will help cut PepsiCo’s reliance on sugary drinks and salty snacks. Sales of those products have suffered in the past few years as consumers switch to more-healthful alternatives. As well, many of SodaStream’s customers are using its machines to make their own sparkling water without syrup. PepsiCo also plans to use its large distribution networks to expand the availability of SodaStream’s…

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