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Keurig Dr Pepper (KDP), the soft drinks and coffee firm, has announced that it has entered into an agreement to acquire Netherlands-based coffee and tea major JDE Peet’s for €15.7 billion ($18.21 billion).
This transaction will combine Keurig, North America’s foremost single-serve coffee platform, with JDE Peet’s global coffee brands, building the world’s largest coffee company. On completion, KDP intends to establish two US-listed entities: Beverage Co in refreshment drinks and Global Coffee Co as the world’s leading coffee company.
JDE Peet’s was formed on the merger of JDE and Peet’s coffee, announced in 2019. Keurig Dr Pepper was created out of the 2018 merger between Keurig Green Mountain and Dr Pepper Snapple.
Commenting on the move, KDP CEO Tim Cofer 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”, he added. “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”.
JDE Peet’s CEO Rafa Oliveira said: “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”.
Source: Keurig Dr Pepper
