Summary
PepsiCo is the one buying SodaStream, an often-named acquisition target.
The deal makes sense from a strategic and environmental point of view, yet is a bit pricey given where shares traded in recent years.
I like the overall aggressiveness of PepsiCo with regards to deals, yet consider shares fairly valued at a modest premium to the market at current levels.
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PepsiCo (PEP) has been the soft drink giant which made a much-anticipated move for SodaStream (SODA). Despite the fact that shares of SodaStream now trade at 10 times the level just two years ago, the deal is very small for PepsiCo, representing less than 2% of its enterprise value. More importantly, it creates a strategic area of growth as well as environmentally-friendly solution.
I like the aggressiveness of the company with regards to dealmaking, but regard shares largely fairly-valued after a recent recovery from the May lows, making that shares largely trade at fair levels in my book.
