Keurig Dr Pepper (KDP) has announced its acquisition of JDE Peet’s in an all-cash transaction. The deal is valued at €15.7 billion, with KDP paying JDE Peet’s shareholders €31.85 per share in cash, representing a 33% premium to JDE Peet’s 90-day volume-weighted average stock price.
The acquisition is expected to create significant value for KDP shareholders, with approximately $400 million in anticipated cost synergies to be realized over three years. Post-acquisition, KDP plans to separate into two independent, publicly traded companies * a scaled challenger in the North American refreshment beverages market ("Beverage Co.") and the world's largest pure-play coffee company ("Global Coffee Co.").
Upon separation, Global Coffee Co. will have approximately $16 billion in combined annual net sales, with a presence in over 100 countries. It will lead the next generation of coffee innovation worldwide and is expected to enjoy strong profitability and robust cash generation. Beverage Co., with more than $11 billion in annual net sales, will be a scaled challenger in the $300 billion North American refreshment beverage market.
The transaction is subject to customary closing conditions and is expected to occur in the first half of 2026. Upon completion, KDP CEO Tim Cofer will become CEO of Beverage Co., and Sudhanshu Priyadarshi will become CEO of Global Coffee Co.
The acquisition and subsequent separation are aimed at creating two strategically focused, scaled beverage companies with differentiated shareholder value propositions, featuring distinct growth and capital allocation frameworks designed to deliver sustained and compelling long-term value. Following these announcements, the company's shares moved -0.18%, and are now trading at a price of $35.135. For more information, read the company's full 8-K submission here.
