Keurig Dr Pepper has agreed to pay $18 billion to buy coffee brand JDE Peet’s in a transformational deal that will split the firm into two US-listed companies.
Keurig Dr Pepper has agreed to pay $18 billion to buy coffee brand JDE Peet’s in a transformational deal that will split the firm into two US-listed companies.
It will essentially unwind the 2018 merger that put Keurig, known for its coffee brewers and K-Cups, and soda titan Dr Pepper under the same roof – today valued at around $50 billion.
“This is a bold move,” Keurig Dr Pepper CEO Tim Cofer told the Wall Street Journal.
“But we’ve got a lot of confidence in this transaction.”
Keurig Dr Pepper said it would pay JDE Peet’s shareholders 31.85 euro, or about $37, a share in cash, a 33% premium compared to the average price over the last three months.
The agreement will split JDE Peet’s, an Amsterdam-based company with a $15 billion market value, into a separate company with Keurig and Green Mountain coffee that would have about $16 billion in annual revenue.
Beverage brands like Dr Pepper, 7UP, Snapple and energy drinks Bloom and Ghost will be spun off into the other company, which would boast about $11 billion in annual revenue.
