PepsiCo, Inc.
Acquisitions
5
Major Deals Covered
$21.9B
Disclosed Deal Value
PepsiCo's largest disclosed acquisition here is The Quaker Oats Company (including Gatorade) for $13.4B in 2001. This page covers 5 major deals from 1965 to 2025, each with its price where disclosed and the reason behind it.
| Company | Year | Price | Purpose |
|---|---|---|---|
| The Quaker Oats Company (including Gatorade) | 2001 | $13.4B | Stock deal for Quaker Oats, whose most valuable asset was Gatorade. |
| SodaStream International | 2018 | $3.2B | Acquired leading in-home sparkling water maker to expand sustainable, bottle-free hydration. |
| Tropicana Products | 1998 | $3.3B | Acquired premium chilled orange juice leader to dominate morning breakfast beverages. |
| poppi | 2025 | $1.9B | Added a fast-growing prebiotic soda brand to the functional beverage portfolio. |
| Frito-Lay, Inc. (Merger) | 1965 | Undisclosed | On June 8, 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to form PepsiCo, Inc. This landmark merger brought together a major soft drink company and the nation's leading salty snack manufacturer. |
2025
$1.9B
Added a fast-growing prebiotic soda brand to the functional beverage portfolio.
Price included about $300 million of expected cash tax benefits, for a net $1.65 billion, plus a performance earnout.
Closed May 19, 2025.
2018
$3.2B
Acquired leading in-home sparkling water maker to expand sustainable, bottle-free hydration.
Expanded personalized in-home beverage dispensing and reduced single-use plastic waste.
Integrated global hydration brand.
2001
$13.4B
Stock deal for Quaker Oats, whose most valuable asset was Gatorade.
Added Gatorade and Quaker; Quaker is now reported within PepsiCo Foods North America.
Core operating division of PepsiCo.
1998
$3.3B
Acquired premium chilled orange juice leader to dominate morning breakfast beverages.
Established PepsiCo as a leader in refrigerated juice before divesting a majority stake to PAI Partners in 2021.
Operated as a joint venture.
1965
On June 8, 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to form PepsiCo, Inc. This landmark merger brought together a major soft drink company and the nation's leading salty snack manufacturer.
The merger created a powerful 'dual-engine' business model of beverages and snacks that would define PepsiCo's future success and global portfolio.
PepsiCo's current growth strategy has four parts: affordability (price cuts of up to 15% on Lay's, Tostitos, Doritos and Cheetos in February 2026), portfolio shift toward better-for-you and functional brands through acquisitions such as Siete (2025), poppi ($1.95 billion, closed May 2025) and Sabra, cost reduction (three US plant closures, SKU rationalization and a review of North American supply chain and go-to-market), and international expansion in snacks and energy drinks, including its Celsius partnership.
PepsiCo makes money by manufacturing and selling branded snacks, packaged foods and beverages to retailers, foodservice operators and independent bottlers. It reports through regional segments: PepsiCo Foods North America (Frito-Lay and Quaker, combined in 2025), PepsiCo Beverages North America (PBNA), Latin America, Europe, Africa/Middle East/South Asia (AMESA) and Asia Pacific. In North America it runs its own plants and a direct-store-delivery (DSD) system, so its employees deliver and stock shelves. Internationally, much of the beverage business sells concentrate to franchise bottlers such as Varun Beverages, while snacks are largely made and distributed by PepsiCo itself. Volume, pricing and pack-size mix (revenue growth management) drive revenue; advertising and the DSD network sustain shelf presence.
PepsiCo agreed in December 2000 to buy The Quaker Oats Company in a stock deal valued at about $13.4 billion, closing in 2001. Gatorade was the main prize, giving PepsiCo the leading US sports drink.
PepsiCo agreed in August 2018 to buy SodaStream for $3.2 billion in cash, and closed the deal in December 2018. SodaStream makes at-home sparkling water machines.
In March 2020, PepsiCo acquired South African packaged food and beverage leader Pioneer Foods for $1.7 billion, establishing a major manufacturing, milling, and distribution hub to accelerate expansion across Sub-Saharan Africa.
In March 2020, PepsiCo acquired Rockstar Energy for $3.85 billion in cash. The acquisition terminated restrictive legacy distribution covenants, allowing PepsiCo to freely expand its proprietary energy drink lineup and partner with other energy brands like Celsius.
In 2025 PepsiCo closed the acquisition of Siete Foods (grain-free Mexican-American snacks) and bought prebiotic soda brand poppi for $1.95 billion, closing on May 19, 2025.
PepsiCo acquired Sabritas in 1966 and Gamesa (Mexico's largest cookie manufacturer) in 1990 for $320 million, building PepsiCo Mexico into one of the company's most profitable international businesses with a leading DSD store distribution network.
In 2011, PepsiCo acquired leading Russian dairy and fruit juice company Wimm-Bill-Dann for $5.4 billion, making PepsiCo the largest food and beverage enterprise in Russia and expanding its functional nutrition portfolio.
PepsiCo actively prunes non-core or lower-margin assets, demonstrated by the historic spinoff of Yum! Brands (Taco Bell, KFC, Pizza Hut) in 1997 and the $3.3 billion majority stake sale of Tropicana and Naked Juice to PAI Partners in 2022.
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