08:03 AM EDT, 08/29/2025 (MT Newswires) -- PepsiCo ( PEP ) is increasing its stake in Celsius (CELH) in a $585 million deal meant to strengthen the two companies' existing partnership and boost distribution of the energy-drink maker's products, the companies said Friday.

As part of the deal, PepsiCo ( PEP ) has acquired $585 million in newly issued convertible 5% preferred stock while extending its current preferred stock to the same conversion period, according to a joint statement.

Celsius' Alani Nu energy drink will also move under PepsiCo's ( PEP ) distribution in the US and Canada, the companies said.

Celsius has acquired PepsiCo's ( PEP ) Rockstar Energy brand in the US and Canada, while PepsiCo ( PEP ) will continue to own the Rockstar Energy brand internationally, the companies said.

The enhanced partnership further aligns incentives between PepsiCo ( PEP ) and Celsius, and is expected to drive value for their shareholders, the companies said.

Shares of Celsius were up more than 7% in recent premarket activity Friday, while PepsiCo ( PEP ) stock was up 0.2%.