PepsiCo initially paid US$550 million in 2022 for an 8.5 per cent interest in Celsius through a preferred stock deal. Photo by Mario Tama/Getty Images

PepsiCo Inc. is increasing its stake in Celsius Holdings Inc. in a US$585 million deal that will boost distribution of some of the energy-drink maker’s popular beverages.

PepsiCo is buying convertible preferred stock in Celsius that will boost its ownership to 11 per cent, according to an announcement Friday, confirming a Bloomberg News report. As part of the transaction, Celsius will acquire PepsiCo’s Rockstar Energy brand in the U.S. and Canada.

Celsius’ recently acquired female-focused energy drink Alani Nu will move to the PepsiCo distribution in those two countries as well in a bid to accelerate its growth by increasing retail ava

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