PepsiCo Inc (PEP.N) is nearing a deal to acquire sparkling probiotic U.S. drinks company KeVita Inc, people familiar with the matter said on Thursday, in the latest push by the carbonated beverage giant to diversify its soft drinks business.

The deal would be PepsiCo’s first outright acquisition through its venture arm dubbed Naked Emerging Brands, whose mission is to expand the company’s portfolio of sugary drinks by developing brands that appeal to health-conscious consumers.

PepsiCo already owns a minority stake in KeVita, and has a distribution agreement with the Oxnard, California-based company, the people said.

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