Keurig Dr Pepper to buy Dutch coffee giant JDE Peet's for $18B

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Keurig Dr Pepper (NASDAQ:KDP [https://seekingalpha.com/symbol/KDP]) will acquire Dutch coffee company JDE Peet's (OTCPK:JDEPF [https://seekingalpha.com/symbol/JDEPF]) in an all cash transaction worth about $18.4B (€15.7B), the companies have announced [https://seekingalpha.com/pr/20209684-keurig-dr-pepper-to-acquire-jde-peets-and-subsequently-separate-into-two-independent].

The American beverage and coffee maker will pay JDE Peet's (OTCPK:JDEPF [https://seekingalpha.com/symbol/JDEPF]) shareholders €31.85 per share in cash, a 33% premium to JDE Peet's 90-day volume-weighted average stock price. The deal will be funded through new senior unsecured and junior subordinated debt and cash on hand.

The acquisition will unlock incremental operating and financial benefits, including around $400M in anticipated cost synergies to be realized over three years and EPS accretion expected to start in the first year of the combination.

Once the acquisition closes, Keurig Dr Pepper (NASDAQ:KDP [https://seekingalpha.com/symbol/KDP]) plans to split its coffee and beverage units into two separate companies.

The coffee company, with ~$16B in combined annual net sales, will be the world's largest pure-play coffee company housing $1B+ revenue brands such as Keurig and Jacobs as well as retailer Peet's Coffee.

The beverage company, with over $11B in annual net sales, will house brands such as Dr Pepper, Canada Dry and 7UP.

The combined company will be led by Keurig Dr Pepper's (KDP [https://seekingalpha.com/symbol/KDP]) management team, including CEO Tim Cofer and CFO Sudhanshu Priyadarshi.

MORE ON KEURIG DR PEPPER, JDE PEET'S

* Keurig Dr Pepper: A Stable Business With Prospects In The Energy Drink Market [https://seekingalpha.com/article/4813389-keurig-dr-pepper-a-stable-business-with-prospects-in-the-energy-drink-market]
* JDE Peet's N.V. (JDEPF) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4806540-jde-peets-n-v-jdepf-q2-2025-earnings-call-transcript]
* Keurig Dr Pepper near $18B takeover deal for JDE Peet’s - WSJ [https://seekingalpha.com/news/4488585-keurig-dr-pepper-near-18b-takeover-deal-for-jde-peet-s-wsj]
* Keurig Dr Pepper impresses after growing organic sales faster than rivals [https://seekingalpha.com/news/4472649-keurig-dr-pepper-impresses-analysts-after-growing-organic-sales-faster-than-rivals]