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3w ago

Keurig Dr Pepper to Buy JDE Peet’s for €15.7 Billion and Split Into Two Public Companies

Leaders say the structure will sharpen focus by forming a global coffee pure play.

FILE - The logo for Keurig Dr. Pepper appears above a trading post on the floor of the New York Stock Exchange, July 12, 2018. (AP Photo/Richard Drew, File)
Dr Pepper soda cans for sale are pictured at a grocery store in Pasadena, California, U.S., February 14, 2018. REUTERS/Mario Anzuoni/File Photo
Bottles of Dr. Pepper soda on a supermarket shelf in New York on January 29, 2018.

Overview

  • Keurig Dr Pepper agreed to an all-cash offer of €31.85 per share for JDE Peet’s, valuing the deal at about €15.7 billion ($18.4 billion), with a previously declared €0.36 dividend to be paid by JDE Peet’s before closing.
  • The companies expect the acquisition to close in the first half of 2026, followed by a spin-off of Global Coffee Co. to KDP shareholders by the end of 2026, subject to regulatory and shareholder approvals.
  • Global Coffee Co. is projected at roughly $16 billion in annual sales across more than 100 countries, Beverage Co. at more than $11 billion focused on North America, with targeted cost savings of about $400 million over three years.
  • Tim Cofer will lead Beverage Co. from Frisco, Texas, and KDP CFO Sudhanshu Priyadarshi will head Global Coffee Co., which will be based in Burlington, Massachusetts, with international headquarters in Amsterdam.
  • On the announcement, JDE Peet’s shares jumped and KDP shares fell, and JAB Holding said it expects to hold nearly 5% of each company after the separation.