PepsiCo Inc. is increasing its stake in Celsius Holdings Inc. in a $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%, 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 availability. The moves mean Celsius will be the strategic energy lead for PepsiCo in the U.S., managing the Celsius, Alani Nu and Rockstar Energy brands, while PepsiCo

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