Keurig Dr Pepper (KDP), Burlington Mass., and Frisco, Texas, and JDE Peet’s, Amsterdam, introduced they’ve entered right into a definitive settlement below which KDP will purchase JDE Peet’s in an all-cash transaction.
This thrilling deal will create a world espresso champion by way of the complementary mixture of KDP’s Keurig, North America’s main single-serve espresso platform, with JDE Peet’s worldwide portfolio of beloved espresso manufacturers, the businesses word. After the acquisition closes, KDP plans to separate into two unbiased, U.S.-listed publicly traded firms, making a scaled development challenger in North America’s engaging refreshment drinks market (“Beverage Co.”) and the world’s No. 1 pure-play espresso firm (“World Espresso Co.”), it says.
Below the phrases of the transaction, KDP can pay JDE Peet’s shareholders €31.85 per share in money, a 33% premium to JDE Peet’s 90-day volume-weighted common inventory value, representing a complete fairness consideration of €15.7 billion. JDE Peet’s additionally can pay a beforehand declared dividend of €0.36 per share previous to closing, with no discount to the supply value.
The strategic rationale is a transformational subsequent step in KDP’s shareholder worth creation journey, in keeping with the corporate. A singular alternative to ascertain a world espresso chief by combining KDP’s disruptive spirit, next-generation espresso improvements and single-serve management with JDE Peet’s almost 300-year legacy, world attain and top-tier portfolio of manufacturers, it notes.
Acquisition of JDE Peet’s is predicted to ship the next compelling synergies and generate vital worth for KDP shareholders together with:
• Deliberate separation, by way of a tax-free spin-off of World Espresso Co., will place Beverage Co. and World Espresso Co. to win of their respective markets by leveraging working fashions optimized to distinctive class dynamics.
• Creates two strategically targeted, scaled beverage firms with differentiated shareholder worth propositions, that includes distinct development and capital allocation frameworks designed to ship sustained and compelling long-term worth.
The acquisition of JDE Peet’s will considerably improve KDP’s espresso positioning, creating a powerful, resilient and diversified world portfolio, the corporate says. It would additionally unlock incremental working and monetary advantages, together with roughly $400 million in anticipated value synergies to be realized over three years and EPS accretion anticipated to start out in yr one of many mixture, it provides.
Upon separation, World Espresso Co., with roughly $16 billion in mixed annual web gross sales, would be the world’s largest pure-play espresso firm, it notes. With attain throughout greater than 100 international locations, together with 40 wherein the corporate holds the No. 1 or No. 2 market place by gross sales, World Espresso Co. will get pleasure from an unparalleled portfolio throughout all espresso segments, channels and value factors, the corporate says.
Espresso is among the most consumed drinks globally, representing a $400 billion class with speedy development in rising markets, and World Espresso Co. will lead the subsequent era of espresso innovation worldwide, it notes. With the power to quickly scale profitable concepts, sturdy profitability, and strong money era, World Espresso Co. will probably be effectively positioned to ship engaging, predictable development, enhanced by regular money returns, the corporate says.
Beverage Co., with greater than $11 billion in annual web gross sales, will probably be a scaled challenger within the $300 billion North American refreshment beverage market, in keeping with the corporate. With a portfolio of iconic and rising manufacturers, a differentiated and increasing direct-store-delivery (DSD) system, and a confirmed, capital-efficient development mannequin, Beverage Co. will profit from a number of drivers to proceed to win in its huge and fragmented trade and assist a dynamic method to capital allocation and improve optionality, it says.
“Right now’s announcement marks a transformational second within the beverage trade, as we construct on KDP’s disruptive legacy by creating two profitable firms, together with a brand new world espresso champion,” mentioned Tim Cofer, CEO of KDP, in a press release. “By means of the complementary mixture of Keurig and JDE Peet’s, we’re seizing an distinctive alternative to create a world espresso big. That is the appropriate time for this transaction, with KDP able of operational and monetary power, momentum throughout our developed portfolio, and growing espresso class resilience. By creating two sharply targeted beverage firms with engaging and tailor-made development propositions and capital allocation methods, we’re poised to generate vital shareholder worth in each the close to and long run.”
Rafa Oliveira, CEO of JDE Peet’s, added: “We’re excited to affix forces with Keurig to chart the way forward for world espresso by leveraging our mixed portfolio of the world’s most beloved espresso manufacturers. This extremely complementary transaction will ship a horny premium for our shareholders and can create compelling future development alternatives for our workers, prospects and different stakeholders. We’re extremely pleased with the formidable world platform that now we have constructed at JDE Peet’s and, along with Keurig, we’re wanting ahead to powering a brand new period of espresso innovation and management, constructing on JDE Peet’s lately introduced ‘Reignite the Wonderful’ technique.”
Each World Espresso Co. and Beverage Co. will probably be positioned to ship engaging returns to their distinctive investor bases by way of distinct monetary profiles, with tailor-made development and capital allocation frameworks, and optimized working fashions calibrated to core classes and geographies, the corporate says, together with World Espresso Co.: Pure-Play, it notes.
World Espresso Co. can have the world’s most expansive espresso portfolio, in keeping with the corporate, together with $1 billion-plus income manufacturers from Keurig, Jacobs, L’OR and Peet’s. World Espresso Co. will profit from:
Complementary geographic footprint throughout developed and rising markets: Becoming a member of collectively JDE Peet’s world attain with KDP’s single-serve espresso management in North America, the world’s largest espresso market.
Unparallelled portfolio throughout all espresso segments, channels and value factors: Targeted technique and diversified product combine place the platform for enhanced natural development and resilience.
World manufacturing footprint of 40-plus services and native route-to-market experience: Means to quickly scale next-generation espresso innovation throughout extra manufacturers and markets by leveraging a classy provide chain, breadth of expertise and native market expertise.
Engaging, dependable development mannequin: Regular and resilient income development pushed by targeted execution and innovation, plus sturdy margins with upside potential, together with roughly $400 million in anticipated value synergies. Along with strong money movement era, World Espresso Co. will probably be arrange for sturdy and constant EPS development and shareholder returns, together with a compelling dividend.
Furthermore, KDP has considerably developed its refreshment portfolio and positioned it for quick development, with a consumer-obsessed method and main innovation driving multi-year share positive factors, the corporate says, as an unbiased firm, Beverage Co. will profit from:
Iconic mega-brands and speedy growth into high-growth classes: America’ No. 1 flavored carbonated mushy drink portfolio led by powerhouse $5 billion-plus model Dr Pepper and $1 billion-plus model Canada Dry, iconic favorites like 7UP and A&W, and greater than $3 billion in high-growth classes like power and useful drinks. Plus, main positions in Mexico, together with Peñafiel, the nation’s No. 1 mineral water, and in Canada, throughout carbonated mushy drinks and fast-growing ready-to-drink alcohol and low- and no-alcohol alternate options.
Confirmed construct, purchase, accomplice mannequin, propelled by most popular accomplice credentials: A capital-efficient mannequin and monitor file of profitable partnerships with founders permits Beverage Co.’s portfolio to evolve in response to altering shopper preferences.
A sturdy DSD platform with alternatives to broaden: Momentum to be supported by Beverage Co.’s vital DSD belongings in the USA and Mexico, with continued future scaling opportunitie
Trade-leading income development and robust margins: Robust free money movement and capital-efficient development mannequin to assist dynamic capital allocation, together with investing in natural and inorganic development, a aggressive dividend and different opportunistic money returns to shareholders.
Upon completion of the acquisition of JDE Peet’s and till the meant separation is full, the mixed firm will probably be led by KDP’s administration group, together with CEO Tim Cofer and CFO Sudhanshu Priyadarshi.
Upon completion of the separation, Cofer will turn out to be CEO of Beverage Co. and Priyadarshi will turn out to be CEO of World Espresso Co. Rafa Oliveira will proceed to function CEO of JDE Peet’s till the closing of the acquisition. Further members of management and Boards of Administrators for each firms will probably be introduced at a later date.
The worldwide headquarters for World Espresso Co. will probably be situated in Burlington, Mass., and its worldwide headquarters will probably be in Amsterdam, the Netherlands. Beverage Co. will probably be headquartered in Frisco, Texas.
Below the phrases of the settlement, KDP will start an all-cash tender supply to buy all excellent strange shares of JDE Peet’s. The tender supply values 100% of the strange shares of JDE Peet’s at roughly €15.7 billion. An affiliate of JAB Holdings, Acorn Holdings B.V. (“Acorna”), and sure of JDE Peet’s administrators and officers have entered into agreements pursuant to which they’ve dedicated to tender their shares and vote in favor of the acquisition.
As of August 22, 2025, these events, in mixture, held 69% of the voting energy of JDE Peet’s inventory.
The transaction will probably be funded by way of a mixture of latest senior unsecured and junior subordinated debt and money available. KDP expects to stay funding grade-rated, and Beverage Co. and World Espresso Co. additionally will probably be dedicated to funding grade credit score profiles upon separation, it says.
The graduation of the tender supply and the closing of the acquisition of JDE Peet’s, which was unanimously authorized by JDE Peet’s Board of Administrators, are anticipated to happen within the first half of 2026, topic to the satisfaction or waiver of customary pre-offer situations and shutting situations as described in Annex A.
Further particulars regarding the JDE Peet’s Board of Administrators’ advice, the equity opinion delivered to the JDE Peet’s Board of Administrators, the non-financial covenants, the routes to buying 100% of the JDE Peet’s shares, the exclusivity provisions and procedures for a competing supply and termination are offered in Annex B to this press launch, it notes.
The following deliberate separation is predicted to happen as quickly as practicable following the shut of the acquisition. The separation transaction is predicted to be affected by way of a tax-free spin-off of World Espresso Co. and is topic to remaining approval by KDP’s Board of Administrators and different customary situations, together with the receipt of opinions from tax advisors.
KDP hosted a convention name on Monday, August 25 at 8 a.m. ET to debate the announcement. A stay webcast of the decision and the replay will probably be obtainable on the KDP web site at www.keurigdrpepper.com and on the JDE Peet’s web site at www.jdepeets.com.
