PepsiCo, which owns brands including Tropicana, Walkers and Doritos, said it had agreed to acquire all of SodaStream's outstanding shares at $144 (£112) each.
PepsiCo on Monday announced plans to buy home carbonation system maker SodaStream.
PepsiCo said on Monday (Aug 20) it was buying Israeli company SodaStream for US$3.2 billion as the United States beverage giant contends with falling demand for sugar-laden soft drinks among health-conscious consumers.
Israeli-based SodaStream listed on the NASDAQ in 2010.
In one of her final acts as chief executive officer of PepsiCo, Indra Nooyi is betting on a razors-and-blades kind of business model to reanimate revenue growth that has been waning due to weak demand for traditional sugary soft drinks. The transaction will be funded with PepsiCo's cash on hand.
SodaStream makes machines that carbonate home tap water, and both PepsiCo and its arch-rival Coca-Cola have been diversifying away from their mainstay fizzy drinks in part to counter the onset of anti-obesity sugar taxes around the world.
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She said SodaStream's products, which are marketed as a healthy alternative to sugary drinks, fit in with the USA firm's goal of "making more nutritious products while limiting our environmental footprint".
"Together, we can advance our shared vision of a healthier, more sustainable planet".
"I am excited our team will have access to PepsiCo's vast capabilities and resources to take us to the next level".
PepsiCo said SodaStream complements its water business, which includes Aquafina and smaller brands Bubly and Lifewtr. "This is great news for our consumers, employees, and retail partners worldwide".
If regulators approve the deal, it is expected to be finalised by January 2019, subject to a vote by Sodastream shareholders.
The move will bring Israeli-based SodaStream International Ltd. under American ownership, and give PepsiCo more points for moving to decrease the amount of plastic flowing into landfills and seas.