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Keurig Dr. Pepper invests $863M in C4 Energy parent

Cans of C4 Energy drink are displayed on a table.

Photo: Mark Von Holden/Variety via Getty Images

Keurig Dr. Pepper will invest $863 million in C4 Energy drink's parent Nutrabolt as part of a long-term sales and distribution deal.

Why it matters: As we reported before, with so many energy brands tied up with various investors and strategics, competition for unclaimed brands is heating up.

  • Axios reported in late August that Keurig Dr Pepper (KDP) was circling energy drink targets after talks with Bang Energy fell through, namely C4 Energy.

Of note: PE firm MidOcean partners had been a significant investor in Nutrabolt since 2014.

Details: KDP's cash investment of $863 million, which is about $740 million net of anticipated cash tax benefits, is in exchange for preferred equity with a 5% annual coupon paid in cash or in-kind, which equates to an ownership stake of about 30%.

  • Nutrabolt's founder, chairman and CEO Doss Cunningham will remain the largest shareholder, however.
  • The valuation of the business works out to be 4X Nutrabolt's 2023 revenue, projected to be more than $650 million.
  • KDP will have opportunities to increase its ownership stake, according to the agreement.

Catch up fast: Energy drink brands that remain without partners include Alani Nu, Uptime Energy and G Fuel.

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