Keurig Dr Pepper on Monday, August 25, announced a deal worth more than $18 billion to acquire JDE Peet's, the coffee company behind well-known brands like Douwe Egberts, Kenco and Peet’s Coffee.
Once the deal is complete, Keurig Dr Pepper will split it into two independent companies in which Beverage Co. focused on soft drinks and the other called Global Coffee Co. dedicated to coffee products.
As per CNN, Dr Pepper will buy the Dutch company by paying its shareholders €31.85 ($37.26) per share in cash which adds up to a total cost of about €15.7 billion ($18.4 billion).
Although Dr Pepper is extremely popular in the US, second only to Coca-Cola and even consumed more than Pepsi, coffee is more favourite among the Americans.
Tim Cofer, the CEO of Keurig Dr Pepper, said in the statement, noting, “This is the right time for this transaction. Company’s position of operational and financial strength, momentum across our evolved portfolio and increasing coffee category resilience.”
As per the outlet, the newly formed Global Coffee Co. projected to generate about $16 billion in yearly revenue and also will be the largest company of its kind worldwide.
This will be solely dedicated to coffee with its product being sold in over 100 countries.
Shortly after the announcement, the value of Keurig Dr Pepper's shares dropped by 8%.
