Illustration: Aïda Amer/Axios
Keurig Dr Pepper appears to have succeeded in assuaging Wall Street, and maybe even fending off an activist investor, after announcing that Apollo and KKR will invest $7 billion to help finance its pending split into a pair of publicly traded companies.
- The beverage maker's stock, which had fallen 20% since announcing its $18 billion Peet's acquisition in August, closed up 7% at $29.23.
- Just weeks earlier, Starboard Value took an undisclosed stake in the company.
The intrigue: KDP said that CFO Sudhanshu Priyadarshi no longer will lead the coffee spinoff, with the company instead initiating an internal and external search.
- KDP also said that KKR advisor Brian Driscoll would be added to its board.
By the numbers: KDP said its net leverage should fall 1% and its earnings per share should jump 10% in the first full year after the deal closes.
Zoom out: Activists are zeroing in on Big Beverage.
- Earlier this month, PepsiCo. CEO Ramon Laguarta said the company was having "constructive" talks with Elliott, which is pushing for a breakup.
- Elliott also has a sizable stake in Starbucks, which so far has resulted in a CEO change.
