Overview
- The companies announced Tuesday that KDP will sell its full Chobani equity stake for $800 million and transfer the Allentown manufacturing campus to Chobani for about $125 million, producing roughly $925 million in pre‑tax proceeds.
- Keurig Dr Pepper said it will use net proceeds to reduce debt and support its planned split into separate beverage and global coffee businesses, and the transactions are expected to close in the third quarter of 2026 subject to customary conditions.
- Chobani intends to invest approximately $1.2 billion over five years to expand the 1.5 million‑square‑foot site, add up to 10 production lines, and create about 900 jobs in the Lehigh Valley.
- The deal includes worker protections and operational continuity measures: Chobani will offer jobs to manufacturing and warehouse employees, KDP will retain delivery, customer service and corporate staff, and a co‑manufacturing arrangement will preserve production during the handover.
- The companies updated their long‑term commercial ties so KDP keeps distributing La Colombe ready‑to‑drink beverages and managing La Colombe K‑Cup® licensing in the U.S. and Canada, while Pennsylvania will support the project with about $50 million in grants and loans.