PepsiCo on Wednesday formally announced the deal, which will expand the beverage giant’s footprint in the high-demand and highly competitive energy-drink market.
The agreement includes $700 million of payments related to future tax benefits associated with the transaction, payable over up to 15 years, according to the companies.
The transaction, which is subject to typical closing conditions as well as regulatory approval, is expected to close in the first half of 2020. PepsiCo said it doesn't expect the deal to be material to its 2020 revenue or per-share earnings.
In addition to Rockstar, PepsiCo's energy portfolio includes Mountain Dew's Kickstart, GameFuel, and AMP. Coke, which owns a stake in Monster Beverage (MNST) - Get Report and distributes its products, recently launched an energy drink in the U.S. over Monster’s objections.
Catch up on the Latest Videos on TheStreet!
- Jim Cramer With 5 Answers to Wall Street's Biggest Coronavirus Questions
- Jim Cramer on Stocks to Sell While the Market Is Volatile
- Here's How the Coronavirus Could Impact Sports-Related Revenues
- Will Travel and Tourism Recover From Coronavirus?
- Sensata Technologies CEO on Coronavirus Impact
- TurboTax Webinar: How to Track Your Tax Refund
- TheStreet Explains: What Is the Fed Funds Rate?
- Retirement Daily: Don’t Retire With Debt: It’s Bad for Your Well-Being