PepsiCo will buy SodaStream manufacturing machines for producing sparkling water at home for $3,2 billion. This deal is one more step in competition with Coca-Cola for healthy drinks market.

SodaStream, based in Israel, is getting more popular among young generation that wants to drink less soda and limit use of plastic bottles.

According to data from Euromonitor, sales of bottled water showed 6,2% annual growth in last five years, while sales of carbonated drinks were stable.

PepsiCo will pay $144 per share, which is 10,9% higher that SodaStream’s closing price on Firday.

Shares of SodaStream gained 9% in Tel-Aviv and 10% in the US. Shares of the company grew 85% this year and 78% last year. Revenue increased by 31% in second quarter.

PepsoCo’s shares gained just 0,3%, as analytics doubt that this deal will help the company that has difficulties.