Keurig, Dr. Pepper to Merge

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Keurig, Dr. Pepper to Merge

By Anna Wolfe - 01/30/2018

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.