When this reporter wished Daniel Birnbaum, “mazal tov” for clinching the $3.2 billion deal with PepsiCo, the CEO of the Israeli maker of dwelling seltzer machines mentioned with a smile, “It is just not luck, however exhausting work.”
Some six weeks in the past, the outgoing CEO of PepsiCo, Indra Nooyi, requested to satisfy the CEO of Israel’s SodaStream in London, and along with Ramon Laguarta, who would be the US meals and beverage big’s subsequent CEO, they’d a “good dialog about the way forward for the beverage trade,” defined SodaStream’s Birnbaum in an interview in Tel Aviv.
“She requested if I’d be open to a proposal, a strategic partnership of some kind. So all of it unfolded in a short time.” At that assembly, they drank glowing water in a London lodge, Birnbaum, the CEO of the Israeli maker of the house seltzer machines, famous with fun.
Birnbaum spoke to The Times of Israel after PepsiCo and SodaStream inked the deal in Tel Aviv on Monday.
The greatest hurdle to the deal, signed within the morning between Birnbaum and Laguarta, was the rising worth of SodaStream shares, Birnbaum mentioned.
“Price was a hurdle. Our share worth stored creeping up, within the final month, it went up by 25% or so or extra, and that was one thing that was chasing the deal.”
Hundreds of PepsiCo representatives scrutinized “each side of the corporate,” he mentioned, earlier than the deal was lastly signed.
Birnbaum will proceed to steer SodaStream even after the deal is accomplished, with the corporate working as an impartial unit inside PepsiCo, with its headquarters in Israel and sustaining its personal model, Laguarta mentioned on the press convention. The US big doesn’t plan to put off employees in Israel following the deal, Laguarta mentioned, however relatively will construct on the present infrastructure in Israel, and develop PepsiCo and SodaStream in tandem.
What will change most for SodaStream after the deal, mentioned Birnbaum within the interview, is that the corporate will now have “entry to sources we could not have had till immediately.”
This will embody individuals, know-how, R&D capabilities and distribution channels, in addition to entry to retailers, he mentioned. “They are in lots of extra shops than we’re. We could have entry to new markets, new international locations, we’ll have limitless price range, money for advertising and marketing, investments, for development, capital to broaden our manufacturing facility, so all the things that it takes to develop a enterprise will now be larger,” he mentioned.
PepsiCo’s dedication is to maintain the enterprise in Israel, and the manufacturing facility in Rahat, “on the present scale for a minimum of 15 years,” Birnbaum mentioned.
This signifies that “the quantity of staff that work there, which is about 2,000,” might be maintained for a minimum of that time frame. In addition, the corporate is constructing a brand new manufacturing facility, subsequent to the one in Rahat, that may make use of one other few hundred individuals, he mentioned. In complete, SodaStream employs some 3,000 employees, 2,500 of whom are in Israel, he mentioned.
What considerations you concerning the deal?
He has “extra consolation” from the deal than issues that fear him, he mentioned.
“What comforts me is their dedication to maintain SodaStream an impartial working unit,” he mentioned.
Lots of the massive corporates notice that in the event that they attempt to combine acquisitions, particularly entrepreneurial acquisitions, or startups, into the company, you principally kill them, you destroy the spirit. The coronary heart,” he mentioned.
“We will not be a startup,” he added. But “we’ve got a mentality of a startup.”
PepsiCo understands this, he mentioned. “They knew that. I didn’t should persuade them. Because once I requested Indra will you allow us to work, she mentioned, ‘Absolutely, we would like you to proceed to do what you’re doing.’”
“PepsiCo are buying SodaStream due to who we’re, not due to who we aren’t. And I give them a variety of credit score for that. This is a daring transfer. We are a rival. Not on the identical scale, clearly, however we weren’t saying good issues about one another, and but they realized that our answer is a part of the way forward for the beverage trade, and they’re sufficiently big and courageous sufficient to embrace it and permit it to be a part of their portfolio.”
Original article https://www.timesofisrael.com/sodastream-chief-says-pepsico-deal-will-uncap-opportunities-for-massive-growth/