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

The move aims to create a focused coffee leader with about $16 billion in annual sales.

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 will pay €31.85 per JDE Peet’s share in cash, a 33% premium, with JDE Peet’s set to distribute a previously declared €0.36 dividend before closing.
  • Closing is targeted for the first half of 2026, followed by a spin-off of Global Coffee Co. to KDP shareholders by the end of 2026, leaving Beverage Co. as a separate U.S.-listed business.
  • Tim Cofer is slated to lead Beverage Co., while CFO Sudhanshu Priyadarshi will head Global Coffee Co., which the company says will be the world’s largest pure-play coffee company.
  • Beverage Co. plans a headquarters in Frisco, Texas, and Global Coffee Co. in Burlington, Massachusetts, with international headquarters in Amsterdam, and the companies project about $400 million in three-year synergies.
  • JDE Peet’s shares rose and KDP fell on the announcement, and S&P revised its outlook on KDP to negative, citing leverage likely in the mid-to-high 5x range and a potential downgrade to BBB- closer to closing.