NEW YORK: Keurig Dr Pepper Inc agrees to buy JDE Peet’s NV for €15.7bil (US$18.4bil) in an overhaul that will see it split the coffee business from other beverage operations only a few years after a deal that combined them.
The company will pay €31.85 a share in cash for the Dutch firm, a 20% premium over its closing price on Aug 22, according to a statement yesterday.
Keurig Dr Pepper then plans to separate its units into two independent, US-listed companies once the deal is completed.
“We are seizing an exceptional opportunity to create a global coffee giant,” Keurig Dr Pepper chief executive Tim Cofer said.
Keurig Dr Pepper’s US coffee sales were roughly flat in the second quarter with higher prices for K-Cups being offset by lower shipments of both single-serve pods and brewers.
The business has sputtered amid tougher competition since the 2018 marriage that united Keurig, known for its single-serve coffee pods, and the soda maker Dr Pepper. — Bloomberg
