PepsiCo has had a distribution agreement with Rockstar in North America since 2009. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first half of 2020.    

The addition of the Rockstar, available in more than 30 flavors, will bolster PepsiCo’s energy portfolio that also 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. "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."

"We have had a strong partnership with PepsiCo for the last decade, and I'm happy to take that to the next level and join forces as one company," said Russ Weiner, Rockstar's founder and creator of the world's first 16oz energy drink. "PepsiCo shares our competitive spirit and will invest in growing our brand even further. I'm proud of what we built and how we've changed the game in the energy space."