PepsiCo Inc. will pay $550 million for a stake in fitness-energy drink maker Celsius Holdings Inc. as part of a long-term strategic distribution agreement.
PepsiCo is getting convertible preferred stock equating to 8.5% ownership in Celsius, the companies said Monday in a statement. The soft drink giant will become the preferred distribution partner globally for Celsius and will also nominate a director to serve on its board.
Read more: How Celsius energy drink is challenging Monster and Red Bull—and winning
Shares of Celsius jumped as much as 16% in New York. The stock had been climbing recently amid analyst speculation that PepsiCo could switch to Celsius after ending a distribution pact with Bang Energy. That partnership, struck in 2020, came undone amid disputes and lawsuits. PepsiCo rose 1.2% at 10:35 a.m. New York time.