Particle.news
Download on the App Store
30 ARTICLES
·
1h ago

Keurig Dr Pepper to Buy JDE Peet’s for €15.7 Billion, Then Split Into Two U.S.-Listed Companies

The deal sets up a breakup that unwinds KDP’s 2018 merger, concentrating its coffee assets into a global 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

  • KDP will pay €31.85 per share in cash for JDE Peet’s, targeting closing in the first half of 2026 and a spin-off of Global Coffee Co. to KDP shareholders by the end of 2026.
  • Global Coffee Co. is projected at about $16 billion in annual sales, led by CFO Sudhanshu Priyadarshi with headquarters in Burlington, Massachusetts and Amsterdam.
  • Beverage Co. will retain North American soft drink brands with more than $11 billion in sales, led by CEO Tim Cofer and based in Frisco, Texas.
  • S&P placed KDP on negative credit watch, citing post-deal leverage likely in the mid-to-high 5x range and indicating a likely one-notch downgrade closer to closing.
  • KDP projects roughly $400 million in cost savings over three years, JDE Peet’s will pay a €0.36 pre-close dividend, and shares moved on the news with JDE rising and KDP falling.