Jan 29, 2018

Keurig agrees to buy Dr Pepper Snapple

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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."

Go deeper

Coronavirus stress tests drug industry's dependence on China

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It's unclear whether the rapid spread of the novel coronavirus will actually result in prescription drug shortages, but it has undoubtedly highlighted the potential vulnerabilities of having the supply chain for American drugs so dependent on China.

Driving the news: About 150 prescription drugs — including antibiotics, generics and some branded drugs without alternatives — are at risk of shortage if the coronavirus outbreak in China worsens, per two sources familiar with a list of at-risk drugs compiled by the Food and Drug Administration.

Bernie's path to the presidency

Sen. Bernie Sanders speaks yesterday during a rally at Houston University. Photo: Mark Felix/AFP via Getty Images

Lots of Democrats are in full panic that Bernie Sanders will win the nomination and get clobbered in the general election — and bring the party down, too. But the evidence, particularly the polling, doesn't back those doomsday warnings.

Why it matters: Virtually every national and swing state poll shows Sanders tied with or beating President Trump.  And, unlike every rival, he has a huge base of fervent, unshakable supporters he can only grow.

These swing voters don't like Trump’s environmental rollbacks

Illustration: Sarah Grillo/Axios

Swing voters in four battleground states decisively oppose President Trump’s sweeping rollbacks of environmental regulations — but it’s unlikely to sway their votes.

Why it matters: It’s voters living in states like these, including Florida and Pennsylvania, who fill pivotal roles electing America’s presidents, so we should listen.