Report: PepsiCo In Talks To Acquire Probiotic Drink Company

PepsiCo is reportedly close to an agreement to acquire KeVita, a California-based maker of probiotic drinks.

Reuters, citing sources familiar with the matter, reported that the deal — which would likely value KeVita at less than $500 million — could be announced by the end of the month.

PepsiCo, like other soft drink makers, has sought to broaden its drink offerings to appeal to more health-conscious consumers. The company previously acquired a minority stake in KeVita and the two companies currently have a distribution agreement.

KeVita, launched in 2009, makes a sparking probiotic drink, cleansing probiotic tonic and kombucha. The company touts probiotics as beneficial to digestive and immune health.