PepsiCo has acquired Israeli water machine maker SodaStream in a $3.2 billion deal.

The acquisition forms part of PepsiCo’s strategy to increase its portfolio of health and wellness beverages and the company plans to further expand SodaStream through its distribution networks, global reach, and design and marketing capabilities.

“PepsiCo and SodaStream are an inspired match,” said PepsiCo’s chief executive Indra Nooyi. “Daniel (Birnbaum) and his leadership team have built an extraordinary company that is offering consumers the ability to make great-tasting beverages while reducing the amount of waste generated.

She continued: “That focus is well-aligned with Performance with Purpose, our philosophy of making more nutritious products while limiting our environmental footprint. Together, we can advance our shared vision of a healthier, more-sustainable planet.”

SodaStream’s chief executive Daniel Birnbaum added: “Today marks an important milestone in the SodaStream journey. It is validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world. I am excited our team will have access to PepsiCo’s vast capabilities and resources to take us to the next level. This is great news for our consumers, employees and retail partners worldwide.”