Keurig, Dr. Pepper to Merge
Dr Pepper Snapple Group Inc. and Keurig Green Mountain Inc. have entered into a definitive merger agreement to create Keurig Dr Pepper. a new beverage company with a distribution capability to reach virtually every point-of-sale in North America.
The deal will pay $18.7 billion in cash to shareholders and assemble a massive beverage distribution network in the U.S., giving Keurig's investor, JAB Holding Co., even greater control over how Americans eat and drink, reported Bloomberg.
Dr Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and retain 13 percent of the combined company.
The beverage company will have pro forma combined 2017 annual revenues of approximately $11 billion.
This deal unites Dr Pepper, 7UP, Snapple, A&W, Mott’s and Sunkist with Green Mountain Coffee Roasters and the Keurig single-serve coffee brewing system, as well as more than 75 owned, licensed and partner brands in the Keurig system.
Once the transaction closes Keurig Dr Pepper will be a publicly traded company, with JAB Holding Co. as its controlling shareholder.