11:36 AM EDT, 03/17/2025 (MT Newswires) -- PepsiCo ( PEP ) announced plans on Monday to buy prebiotic soda brand Poppi for $1.95 billion as the beverage and snacks giant looks to expand its portfolio to include health-focused products.

Pepsi expects to receive $300 million in cash tax benefits as part of the transaction, for a net purchase price of $1.65 billion. The deal includes a potential earnout consideration tied to certain performance milestones.

Poppi combines prebiotics, fruit juice and apple cider vinegar to create low-calorie sodas, the companies said in a joint statement. Shares of PepsiCo ( PEP ) rose 1.8% in Monday trade.

"More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness," PepsiCo ( PEP ) Chief Executive Ramon Laguarta said. "Poppi is a great complement to our portfolio transformation efforts to meet these needs."

PepsiCo ( PEP ), known for brands such as Pepsi, Mountain Dew, Cheetos and Doritos, has been evolving its food and beverage portfolio over many years, according to Laguarta.

Poppi founders Allison and Stephen Ellsworth appeared on the TV show "Shark Tank" in 2018, and gained the backing of investor Rohan Oza, co-founder of CAVU Consumer Partners, Reuters reported.

"We're beyond thrilled to be partnering with PepsiCo ( PEP ) so that even more consumers across America, and the world, can enjoy poppi -- a truly modern soda for the next generation," Oza said in the statement.

The transaction is subject to regulatory approval.

"As we look to reorient our portfolio offerings to address white space consumer needs, the Poppi brand's unique intersection with wellness and culture is a perfect addition to our portfolio," said Ram Krishnan, chief executive of PepsiCo Beverages US.

Last month, Laguarta said the company was taking actions to improve performance in North America after volumes in beverage and Quaker foods fell in the fourth quarter.

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