Keurig agrees to buy Dr Pepper Snapple
Add Axios as your preferred source to
see more of our stories on Google.
Keurig Green Mountain, controlled by JAB Holdings, has agreed to acquire Dr Pepper Snapple Group in a $21 billion tie-up.
Why it's a big deal: Outside of soon being able to quickly brew a cup of 7-Up Dark Roast? Okay, because this reflects broader trends of beverage industry consolidation and of sugary beverage makers needing to diversify their product offerings. Usually such diversification comes on the buy-side, but selling to a coffee company also works.
DPS shareholders will receive $103.75 per share in a special cash dividend — compared to Friday's $95.65 closing price — and retain a 13% stake in the combined company.
The controlling shareholder will be Europe's JAB Holdings, while Mondelez International will hold upwards of a 14% position. The combined company would generate around $11 billion in pro forma revenue.
Bottom line from Bloomberg:
"The deal vaults JAB into competition with the likes of Coca-Cola Co. and PepsiCo Inc. in soft drinks, moving it beyond fast food and coffee, where the privately held company has acquired Panera Bread, Caribou, Peet’s and other chains."
