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PepsiCo to Pay $550 Million for 8.5% Stake in Fitness-Drink Maker Celsius

  • Beverage giant to pay $550 million in distribution agreement
  • Celsius sales have grown quickly with vitamin-infused drinks
Celsius fitness energy drink
Celsius fitness energy drinkPhotographer: Aaron Davidson/Getty Images
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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.