PepsiCo and Celsius sign long-term distribution agreement and investment of $550M in Celsius by PepsiCo
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PepsiCo (NASDAQ:PEP) and Celsius (NASDAQ:CELH) announced a definitive agreement forging a long-term strategic distribution arrangement wherein Celsius' current U.S. distribution will be initially transitioned to PepsiCo's capabilities.
Under the transaction, PepsiCo will also make an investment in Celsius in support of its growth agenda and will nominate a director to serve on Celsius' Board.

Under the agreement terms, PepsiCo will make a net cash investment of $550M to Celsius in exchange for convertible preferred stock; shares underlying the transaction were priced at $75/share or ~7.33M shares equivalent to an estimated 8.5% ownership in Celsius on an as-converted basis.
The preferred shares are entitled to a 5% annual dividend.
The agreement is effective Aug.1, 2022 and it includes retail and food service channels; PepsiCo will also become the preferred distribution partner globally for Celsius.
CELH shares soared 9% premarket.