It’s buying Dutch coffee company JDE Peet’s.
Transcript:
CAROLINE WOODS: Keurig Dr Pepper is shaking up the coffee and soda world – with a blockbuster $18 billion deal to buy Dutch coffee and tea giant JDE Peet’s.
It’s a transformational move – one that will effectively unwind the 2018 megamerger that first brought Keurig and Dr Pepper together.
The takeover is also expected to deliver $400 million in cost synergies over the next three years.
Once the dust settles, the company plans to split in two – spinning off its coffee and beverage businesses into separately traded U.S. companies.
The new coffee powerhouse will generate about $16 billion in annual sales and be led by Keurig Dr. Pepper’s current CFO. The drinks business, with about $11 billion in sales, will stay under the current CEO.
The goal of the deal? To revive Keurig’s struggling coffee unit – which saw sales slip last quarter as demand for its single-serve pods and coffeemakers cooled.
Keurig Dr Pepper still owns household names like Dr Pepper, 7Up, Snapple, and Green Mountain Coffee – but with this split, it’s betting that two businesses will perform better than one.
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