Plans post-merger split into two public companies
AMSTERDAM: Keurig Dr Pepper Inc (NASDAQ: KDP) said on Monday it will acquire Dutch coffee giant JDE Peet’s (EURONEXT: JDEP) in an all-cash transaction valued at €15.7 billion, marking a major consolidation in the global beverage industry.
The deal will combine KDP’s Keurig® single-serve platform with JDE Peet’s portfolio of legacy coffee brands, creating the world’s largest pure-play coffee company.
Under the terms of the agreement, KDP will pay €31.85 per share, representing a 33% premium to JDE Peet’s 90-day volume-weighted average price. JDE Peet’s shareholders will also receive a previously declared dividend of €0.36 per share prior to closing.
Following the acquisition, KDP plans to separate into two independent, publicly traded U.S.-listed companies: “Global Coffee Co.” and “Beverage Co.” The spin-off will be executed as a tax-free transaction, with each entity pursuing distinct growth strategies and capital allocation frameworks.
Global Coffee Co. will be headquartered in Burlington, Massachusetts, with international operations based in Amsterdam. It will operate across more than 100 countries and hold leading market positions in 40, with annual net sales of approximately $16 billion. The company will house brands including Keurig, Jacobs, L’OR and Peet’s, and is expected to deliver $400 million in cost synergies over three years.
Beverage Co., based in Frisco, Texas, will focus on North America’s $300 billion refreshment beverage market, leveraging a portfolio that includes Dr Pepper®, Canada Dry®, 7UP®, and A&W®. With annual net sales of $11 billion, the company will pursue growth through innovation, partnerships, and expansion of its Direct-Store-Delivery system.
Tim Cofer, current CEO of KDP, will lead Beverage Co. post-separation, while CFO Sudhanshu Priyadarshi will assume the role of CEO at Global Coffee Co. JDE Peet’s CEO Rafa Oliveira will remain in his role until the transaction closes.
The acquisition will be financed through a mix of senior unsecured and junior subordinated debt and cash on hand. KDP expects to maintain its investment-grade credit rating, with both successor companies also targeting investment-grade profiles.
The transaction, backed by JAB Holdings affiliate Acorn Holdings B.V. and key JDE Peet’s stakeholders holding 69% voting power, is expected to close following regulatory approvals and customary conditions.