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Keurig Dr Pepper to Acquire JDE Peet's
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Tuesday, 26 August, 2025, 08 : 00 AM [IST]
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Massachusetts & Texas, USA and Amsterdam, the Netherlands
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Keurig Dr Pepper and JDE Peet's announced they have entered into a definitive agreement under which it will acquire the company in an all-cash transaction. This deal will create a global coffee champion through the complementary combination of Keurig, North America's leading single-serve coffee platform, with its worldwide portfolio of beloved coffee brands. After the acquisition closes, it plans to separate into two independent, US-listed publicly traded companies, creating a scaled growth challenger in North America's attractive refreshment beverages market and the world's #1 pure-play coffee company.
Under the terms of the transaction, it will pay the shareholders €31.85 per share in cash, a 33% premium to its 90-day volume-weighted average stock price, representing a total equity consideration of €15.7 billion. It will also pay a previously declared dividend of €0.36 per share prior to closing, with no reduction to the offer price.
Singular opportunity to establish a global coffee leader by combining its disruptive spirit, next-generation coffee innovations and single-serve leadership with its nearly 300-year legacy, global reach and top-tier portfolio of brands. Acquisition expected to deliver compelling synergies and generate significant value for the shareholders. Planned separation, via a tax-free spin-off of Global Coffee Co., will position Beverage Co. and Global Coffee Co. to win in their respective markets by leveraging operating models optimised to unique category dynamics. Creates two strategically focused, scaled beverage companies with differentiated shareholder value propositions, featuring distinct growth and capital allocation frameworks designed to deliver sustained and compelling long-term value.
The acquisition will significantly enhance its coffee positioning, creating a strong, resilient and diversified global portfolio. It will also unlock incremental operating and financial benefits, including approximately $400 million in anticipated cost synergies to be realised over three years and EPS accretion expected to start in year one of the combination.
Upon separation, Global Coffee Co., with approximately $16 billion in combined annual net sales, will be the world's largest pure-play coffee company. With reach across more than 100 countries, including 40 in which the company holds the #1 or #2 market position by sales, Global Coffee Co. will enjoy an unparalleled portfolio across all coffee segments, channels and price points. Coffee is one of the most consumed beverages globally, representing a $400 billion category with rapid growth in emerging markets, and Global Coffee Co. will lead the next generation of coffee innovation worldwide. With the ability to rapidly scale winning ideas, strong profitability, and robust cash generation, Global Coffee Co. will be well positioned to deliver attractive, predictable growth, enhanced by steady cash returns.
Beverage Co., with more than $11 billion in annual net sales, will be a scaled challenger in the $300 billion North American refreshment beverage market. With a portfolio of iconic and emerging brands, a differentiated and expanding Direct-Store-Delivery (DSD) system, and a proven, capital-efficient growth model, Beverage Co. will benefit from multiple drivers to continue to win in its vast and fragmented industry. Strong free cash flow will support a dynamic approach to capital allocation and enhance optionality.
Tim Cofer, CEO, Keurig Dr Pepper, said, "Today's announcement marks a transformational moment in the beverage industry, as we build on KDP's disruptive legacy by creating two winning companies, including a new global coffee champion. Through the complementary combination of Keurig and JDE Peet's, we are seizing an exceptional opportunity to create a global coffee giant. This is the right time for this transaction, with KDP in a position of operational and financial strength, momentum across our evolved portfolio, and increasing coffee category resilience. By creating two sharply focused beverage companies with attractive and tailored growth propositions and capital allocation strategies, we are poised to generate significant shareholder value in both the near and long term."
Rafa Oliveira, CEO, JDE Peet's, said, "We are excited to join forces with Keurig to chart the future of global coffee by leveraging our combined portfolio of the world's most beloved coffee brands. This highly complementary transaction will deliver an attractive premium for our shareholders and will create compelling future growth opportunities for our employees, customers and other stakeholders. We are incredibly proud of the formidable global platform that we have built at JDE Peet's and, together with Keurig, we are looking forward to powering a new era of coffee innovation and leadership, building on JDE Peet's recently announced 'Reignite the Amazing' strategy."
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