Purchase N.Y-based PepsiCo announced that it has closed the acquisition of poppi, Austin, Texas, for $1.95 billion, including $300 million of anticipated cash tax benefits for a net purchase price of $1.65 billion. The transaction also includes a performance-based earnout contingent on achieving certain performance metrics.

This acquisition marks a significant step in PepsiCo’s ongoing transformation of its portfolio, reinforcing its commitment to meeting evolving consumer preferences for great-tasting, functional products. poppi, a fast-growing prebiotic soda brand, is among PepsiCo’s recent acquisitions, including Siete and Sabra, aimed at aligning with consumers’ modern wellness priorities.

“poppi represents a compelling strategic fit within our short- and long-term vision for the future of beverages,” said Ram Krishnan, CEO of PepsiCo Beverages U.S., in a statement. “Its rapid growth, strong consumer engagement, and differentiated functional positioning make it a dynamic addition to our portfolio. We are excited to scale poppi’s momentum and unlock new growth through our capabilities — we’re just getting started.”

On a mission to modernize soda for the next generation, poppi is a fast-growing functional soda brand made with prebiotics, fruit juice, and apple cider vinegar, offering a low-calorie drink with no more than five grams of sugar in each serving. 

“PepsiCo’s belief in the poppi brand is a tremendous validation of the work we’ve done to advance our mission,” said Chris Hall, CEO of poppi, in a statement. “Their partnership and resources will be instrumental as we scale to our next phase of growth. We’re incredibly grateful to our passionate community and look forward to welcoming even more consumers into the poppi portfolio.”

Centerview Partners LLC acted as lead financial adviser to PepsiCo, and J.P. Morgan Securities LLC, also served as a financial advisor to PepsiCo. Cravath, Swaine & Moore LLP acted as legal adviser to PepsiCo, and Davis Polk & Wardwell LLP acted as tax counsel to PepsiCo. Goldman Sachs & Co. LLC acted as financial adviser to poppi, and Cooley LLP acted as legal adviser to poppi