Pepsi finally has a happy ending

Jim Cramer is breathing a sigh of relief, now that one of the longest running dramas on Wall Street is finally coming to a close. And it had a happy ending for shareholders to boot!

On Friday, PepsiCo announced that the former CEO of Heinz, Bill Johnson, will join its board. Cramer thinks this is big news, not only because Johnson has a long tenure of running a great American company, but also because he is a close advisor to Nelson Peltz's company, Trian.

Getty Images

For months, Peltz has been encouraging PepsiCo CEO Indra Nooyi to break up the company into two divisions. One would focus on its growing snack food company, and the other would specialize in beverages. Cramer sees the appointment of Johnson as a win-win situation for all.

"This addition of Johnson to the PepsiCo board kills two birds with one stone. PepsiCo will get the wisdom of a terrific consumer packaged goods executive, and Peltz and Nooyi can bury the hatchet from what was becoming a protracted fight that I thought in the end was distracting for all involved," said Cramer.

According to the "Mad Money" host, Johnson is an old friend to the show and did a fabulous job at Heinz. He successfully turned around earnings, and stimulated growth.

"But what you might not know about Bill is that he reluctantly accepted Peltz to the board after Nelson successfully fought for some director seats because he was a disgruntled shareholder who wanted more growth from the iconic company," said Cramer.

Cramer considers Peltz to be the only activist worth piggybacking, as his moves have historically generated more earnings for various companies.

Read more from Mad Money with Jim Cramer
Cramer Remix: My take on Target after Canada
Cramer: Forget Switzerland! Make big bucks in USA
Cramer's top biotech with enormous value creation

Thus, this was the perfect compromise between Indra and Peltz. Johnson will bring many bright ideas to the table, based on his history with Heinz and given his perspective with Peltz. It creates a win-win situation for all, especially the shareholders.

"If you own PepsiCo, you just got an improved board that will be working even harder to bring out value," Cramer added.

Note: This story has been edited to update information previously reported on Bill Johnson's acceptance to the PepsiCo board.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website?