Factbox-Inner workings of Keurig Dr Pepper’s $18 billion move for JDE Peet’s
(Reuters) -Keurig Dr Pepper on Monday announced it would buy Dutch company JDE Peet’s for 15.7 billion euros ($18.4 billion) in cash, in a bid to create a global coffee heavyweight.
Here is what is known about the transaction:
THE DEAL’S STRUCTURE:
- In a first step, KDP will buy JDE Peet’s for 15.7 billion euros, a deal that is expected to close in the first half of 2026.
- After the purchase, KDP will break itself up into two U.S. listed companies, one focused on refreshment beverages and one on coffee - for now dubbed Beverage Co and Global Coffee Co, respectively.
- The break-up of the combined entity will take place via a spin-off of Global Coffee Co to KDP’s shareholders by the end of 2026.
- The transaction will result in cost savings and value creation of $400 million over three years.
- JAB Holding, which owns 4.4% in KDP as well as around 68% in JDE Peet’s via its Acorn division, will hold nearly 5% in both entities following the spin-off, it said.
WHAT DO WE KNOW ABOUT BEVERAGE CO?
- More than $11 billion in annual net sales, 88% of which in the United States.
- $3.3 billion in adjusted earnings before interest, tax, depreciation and amortisation.
- Key brands: Dr Pepper, Canada Dry, 7UP and A&W.
- To be led by KDP’s current CEO Tim Cofer.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
- To be headquartered in Frisco, Texas.
WHAT DO WE KNOW ABOUT GLOBAL COFFEE CO?
- About $16 billion in combined annual net sales, of which 40% in North America and Europe, respectively.
- $3.1 billion in adjusted earnings before interest, tax, depreciation and amortisation.
- According to KDP it will be "the world’s largest pure-play coffee company".
- Key brands: Keurig, Jacobs, L’OR and Peet’s.
- Global headquarters in Burlington, Massachusetts; international headquarters in Amsterdam, the Netherlands.
That's one option, but what if there are better opportunities hiding in plain sight?
Investing.com's ProPicks AI has identified growth stocks that often get overlooked by individual investors.
Compare your choice against our global range of AI-selected picks - with 3 out of 4 beating their benchmark index year to date and 98% in the green.
Get fresh new picks every month, now available at 50% off while our Summer Sale lasts. Hurry, offer ends soon!