Celsius Holdings Shares Climb As PepsiCo Acquires Prebiotic Soda Brand Poppi: What's Going On?

Celsius Holdings Inc. CELH shares are trading higher Monday likely reacting to news that PepsiCo Inc. PEP is acquiring prebiotic soda brand Poppi for $1.95 billion.

What To Know: According to The Wall Street Journal, PepsiCo's acquisition includes $300 million in anticipated cash tax benefits, lowering the net purchase price to around $1.65 billion. The company also disclosed that the transaction could involve additional earnout payments if Poppi meets certain performance milestones within a set timeframe. Other terms, including the expected closing date, were not disclosed.

"As we look to reorient our portfolio offerings to address white space consumer needs, the Poppi brand's unique intersection with wellness and culture is a perfect addition to our portfolio," said Ram Krishnan, CEO of PepsiCo Beverages U.S.

Unlike probiotic beverages such as kombucha, which introduce new microbes to the gut, prebiotic sodas like Poppi contain dietary fibers that support existing gut bacteria. The brand uses inulin fiber, typically sourced from agave or chicory root.

CELH Price Action: Celsius Holdings shares were up 9.42% at $29.63 at the time of writing, according to Benzinga Pro.

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