Overview
- Keurig Dr Pepper will receive $4 billion for a K‑Cup manufacturing joint venture it will control and $3 billion in convertible preferred for its beverage unit from Apollo and KKR.
- The company said ratings treatment of the JV equity helps reduce expected post‑deal net debt to roughly $31 billion from $38 billion and lowers projected leverage to 4.6x from 5.6x.
- Third‑quarter revenue rose 10.7% to $4.31 billion with adjusted EPS of $0.54, prompting an increase in full‑year constant‑currency net sales guidance to the high‑single‑digit range.
- U.S. Refreshment Beverages sales grew 14.4% and U.S. Coffee rose 1.5%, with the Ghost energy acquisition contributing about 4.4 percentage points to volume/mix growth.
- Shares jumped as much as about 10% after the announcements, as the company reiterated plans to buy JDE Peet’s for roughly $18 billion, target $400 million in synergies over three years, and separate into Beverage Co. and Global Coffee Co. by end‑2026 while beginning a search for the coffee unit’s CEO.