PepsiCo, Inc., and Celsius Holdings, Inc., maker of a leading global fitness energy drink, CELSIUS, have announced a definitive agreement forging a long-term strategic distribution arrangement. The distribution agreement initially transitions Celsius’ current US distribution to PepsiCo’s best-in-class capabilities. As part of the transaction, PepsiCo will also make an investment of $550 million in Celsius in support of its growth agenda and will nominate a director to serve on Celsius’ Board of Directors.

Kirk Tanner, CEO, PepsiCo Beverages North America said, “The Celsius brand’s growing momentum coupled with the strength of PepsiCo’s portfolio and go-to-market capabilities create a combination we believe will be very compelling and valuable to retailers and consumers. We are looking forward to seeing the impact these two outstanding organizations can make together to more fully capture energy occasions.”