Keurig Dr Pepper to acquire JDE Peet’s in USD $18.4 billion deal

Seven years after merging, Keurig Dr Pepper is separating. Keurig Dr Pepper (NASDAQ: KDP) and JDE Peet’s (EURONEXT: JDEP) today announced they have entered into a definitive agreement under which KDP will acquire JDE Peet’s in an all-cash transaction. The deal will create a global coffee champion through the combination of KDP’s Keurig®, North America’s leading single-serve coffee platform, with JDE Peet’s, world’s leading pure-play coffee company. The aim of the merger is to create further economies of scale in an increasingly complex and challenging global coffee marketplace and to further optimise the supply chain.

After the acquisition closes, the coffee businesses of Keurig Dr Pepper (Burlington, Massachusetts and Frisco, Texas) and JDE Peet’s (Amsterdam, Netherlands) will be combined into a single business and spun off into new companies. The two resulting companies, “Beverage Co” and “Global Coffee Co”, will be listed in the United States. Both JDE Peet’s and Keurig Dr Pepper are controlled by JAB Holding, which will ultimately remain the owner of the new entity. JAB Holding Company is a German conglomerate, headquartered in Luxembourg, which includes investments in companies operating in the areas of consumer goods, coffee, luxury fashion, animal health, and fast food.

Under the terms of the transaction, KDP will pay JDE Peet’s shareholders €31.85 per share in cash, a 33% premium to JDE Peet’s 90-day volume-weighted average stock price, representing a total equity consideration of €15.7 billion. JDE Peet’s will also pay a previously declared dividend of €0.36 per share prior to closing, with no reduction to the offer price.

According to the joint statement, the acquisition of JDE Peet’s will significantly enhance KDP’s coffee positioning, creating a strong, resilient and diversified global portfolio. It will also unlock incremental operating and financial benefits, including approximately USD $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, will remain 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,” per the release. Coffee represents a $400 billion global category with rapid growth in emerging markets.

Per the joint statement, 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 capital-efficient growth model, Beverage Co will benefit from multiple drivers to continue to win in its vast and fragmented industry. When Keurig Dr Pepper was first formed, the rationale behind the merger was to create a beverage giant offering both traditional sodas, on-trend coffee drinks and better-for-you beverages under one umbrella. At the time, executives said Keurig Dr Pepper could tap into a vast distribution system and broad portfolio to offer an array of both hot and cold products that people consumed throughout the day, ranging from morning coffee to afternoon tea to soda — consumed at meal times and as a pick-me-up. (Keurig Dr Pepper also spent $300 million for a 33% stake in La Colombe, which it converted into equity in Chobani after the yogurt maker purchased the coffee roaster two years ago).

However, since the Keurig Dr Pepper union, despite coffee consumption remaining robust, challenges have been weighing on the sector. KDP is struggling amid rising competition, prices for beans are skyrocketing, and as of August 6th, 50% tariffs have been levied on coffee and other Brazilian goods.

Net sales at Keurig Dr Pepper’s coffee business decreased 2.6% to $4 billion in 2024. Higher coffee prices helped the business rebound a bit during the second quarter of 2025, with net sales dropping 0.2% to $900 million. The merger with JDE Peet would create a coffee company expected to have approximately $16 billion in annual net sales, making it the world’s largest pure-play coffee business with a presence in more than 100 countries.

The beverage unit, which will house soda, tea, water, energy drinks and other products, is expected to have more than $11 billion in annual net sales. Last quarter, net sales for the beverage operation at Keurig Dr Pepper jumped 10.5% to $2.7 billion due to strength in carbonated soft drinks such as Dr Pepper, energy and sports hydration, as well as the acquisition of Ghost.

“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,” said Tim Cofer, CEO, KDP. “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.”

“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,” said Rafa Oliveira, CEO, JDE Peet’s. “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.”

Global Coffee Co will have the world’s most expansive coffee portfolio, including $1 billion-plus revenue brands (based on retail sales) Keurig, Jacobs, L’OR and Peet’s. Global Coffee Co will benefit from:
 Complementary geographic footprint across developed and emerging markets: Joining together JDE Peet’s global reach with KDP’s single-serve coffee leadership in North America, the world’s largest coffee market.
 Unparallelled portfolio across all coffee segments, channels and price points: Focused strategy and diversified product mix position the platform for enhanced organic growth and resilience.
 Global manufacturing footprint of 40+ facilities and local route-to-market expertise: Ability to rapidly scale next-generation coffee innovation across more brands and markets by leveraging a sophisticated supply chain, breadth of talent and local market experience.
 Attractive, reliable growth model: Steady and resilient revenue growth driven by focused execution and innovation, plus strong margins with upside potential, including approximately $400M in expected cost synergies. Together with robust cash flow generation, Global Coffee Co. will be set up for strong and consistent EPS growth and shareholder returns, including a compelling dividend.

KDP has significantly evolved its refreshment portfolio and positioned it for fast growth, with a consumer-obsessed approach and leading innovation driving multi-year share gains. As an independent company, Beverage Co will benefit from its iconic mega-brands and rapid expansion into high-growth categories: The United States’ #1 flavoured carbonated soft drink portfolio led by powerhouse $5 billion+ brand Dr Pepper® and $1 billion+ brand Canada Dry®, iconic favourites like 7UP® and A&W®, and more than $3 billion in high-growth categories like energy and functional beverages. Plus, leading positions in Mexico, including Peñafiel®, the country’s #1 mineral water, and in Canada, across carbonated soft drinks and fast-growing ready-to-drink alcohol and low- and no-alcohol alternatives.

Upon completion of the acquisition of JDE Peet’s and until the intended separation is complete, the combined company will be led by KDP’s management team. Upon completion of the separation, CEO Tim Cofer will become CEO of Beverage Co and CFO Sudhanshu Priyadarshi will become CEO of Global Coffee Co. Rafa Oliveira will continue to serve as CEO of JDE Peet’s until the closing of the acquisition. Additional members of leadership and Boards of Directors for both companies will be announced at a later date.

The global headquarters for Global Coffee Co will be located in Burlington, Massachusetts, and its international headquarters will be in Amsterdam, the Netherlands. Beverage Co will be headquartered in Frisco, Texas.

JDE Peet’s Transaction Details
Under the terms of the agreement, KDP will commence an all-cash tender offer to purchase all outstanding ordinary shares of JDE Peet’s. The tender offer values 100% of the ordinary shares of JDE Peet’s at approximately €15.7 billion. An affiliate of JAB Holdings, Acorn Holdings BV (“Acorn”), and certain of JDE Peet’s directors and officers have entered into agreements pursuant to which they have committed to tender their shares and vote in favour of the acquisition. As of August 22, 2025, these parties, in aggregate, held 69% of the voting power of JDE Peet’s stock.

The transaction will be funded through a combination of new senior unsecured and junior subordinated debt and cash on hand. KDP expects to remain investment grade-rated, and Beverage Co and Global Coffee Co will also be committed to investment grade credit profiles upon separation.

The commencement of the tender offer and the closing of the acquisition of JDE Peet’s, which was unanimously approved by JDE Peet’s Board of Directors, are expected to occur in the first half of 2026, subject to the satisfaction or waiver of customary pre-offer conditions and closing conditions.

The subsequent planned separation is expected to occur as soon as practicable following the close of the acquisition. The separation transaction is expected to be effected through a tax-free spin-off of Global Coffee Co and is subject to final approval by KDP’s Board of Directors and other customary conditions, including the receipt of opinions from tax advisors.

For more information on the Keurig Dr Pepper and JDE Peet’s merger, click here.