PepsiCo buying energy-drink maker Rockstar

PepsiCo is edging further into the energy drinks category.

The beverage and snacks maker announced Wednesday it had entered into an agreement to purchase Rockstar Energy Beverages for US$3.85 billion. The deal is expected to close in the coming months.

PepsiCo will be adding Rockstar's line of caffeinated canned beverages to its own portfolio of energy drinks, which includes Mountain Dew's Kickstart, GameFuel, and AMP.

"As we work to be more consumer-centric and capitalize on rising demand in the functional beverage space, this highly strategic acquisition will enable us to leverage PepsiCo's capabilities to both accelerate Rockstar's performance and unlock our ability to expand in the category with existing brands such as Mountain Dew," said PepsiCo chairman and CEO, Ramon Laguarta, in a press release. "Over time, we expect to capture our fair share of this fast-growing, highly profitable category and create meaningful new partnerships in the energy space."

Rockstar energy drinks are available in more than 30 flavours at grocery and convenience stores in more than 30 countries.