Aug 25, 2025 - Business

Keurig Dr Pepper paying $18 billion for Peet's

Dan Primack

Close-up of a Peet's Coffee brown paper cup with white geometric patterns, another cup blurred in the background, and a white plastic lid with ice cubes on the table. — Photo: Zhang Peng/LightRocket via Getty Image

Keurig Dr Pepper on Monday announced an agreement to acquire Peet's Coffee parent JDE Peet's for around $18 billion in cash.

Why it matters: This reads like a megamerger, but really is prelude to a mega-split that would reshape the nonalcoholic beverage market.

Zoom in: KDP plans to split into a pair of independent, publicly traded companies.

One would be focused on coffee, including Peet's, Green Mountain and Keurig. The other would be focused on soft drinks and energy drinks like Dr Pepper, 7Up, Snapple and Ghost.

By the numbers: KDP will pay €31.85 per share for Amsterdam-listed JDE Peet's, a 20% premium to Friday's closing price.

KDP shares are down more than 8% in Monday's premarket trading.

Elsewhere: Coca-Cola reportedly hired Lazard to explore a sale of U.K. coffee chain Costa.

Go deeper, via the WSJ: "Keurig Dr Pepper and JDE Peet's already share common ownership. JAB Holding, the European-based investment firm, holds nearly 70% of the voting power at JDE Peet's. It also owns about 4% of Keurig Dr Pepper and was the driver behind the original Keurig-Dr Pepper tie-up."

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Keurig Dr Pepper paying $18 billion for Peet's

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