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Investing.com -- PepsiCo Inc. is set to increase its ownership in Celsius Holdings Inc. to 11% through a $585 million investment in convertible preferred stock, Bloomberg reported on Friday.
The deal, expected to be announced Friday, will also see Celsius acquire PepsiCo’s Rockstar Energy brand in the US and Canada.
Additionally, Alani Nu, the female-focused energy drink recently acquired by Celsius, will move to PepsiCo’s distribution network in both countries to accelerate growth through wider retail availability.
Under the arrangement, Celsius will become the strategic energy lead for PepsiCo in the US, managing the Celsius, Alani Nu and Rockstar Energy brands, while PepsiCo will handle distribution for the Celsius portfolio in that market, according to the report.
This deal builds on PepsiCo’s initial $550 million investment in 2022, which gave the beverage giant an 8.5% stake in Celsius through preferred stock.
The report also added that the new agreement extends the conversion period for the initial investment to match the terms of the new stake and grants PepsiCo the right to nominate an additional director to Celsius’ board.
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