PepsiCo Boosts Stake in Celsius With $585 Million Deal

PepsiCo Inc. is increasing its stake in Celsius Holdings Inc. in a $585 million deal that will boost distribution of some of the energy-drink maker’s popular beverages.

PepsiCo is buying convertible preferred stock in Celsius that will boost its ownership to 11%, according to an announcement Friday, confirming a Bloomberg News report. As part of the transaction, Celsius will acquire PepsiCo’s Rockstar Energy brand in the US and Canada.

Celsius’ recently acquired female-focused energy drink Alani Nu will move to the PepsiCo distribution in those two countries as well in a bid to accelerate its growth by increasing retail availability. ...