Keurig Dr Pepper and JDE Peet’s announced today that they have reached a definitive agreement for KDP to acquire JDE Peet’s in an all-cash deal valued at €15.7 billion or $18 billion.
Dutch coffee and tea company, JDE Peet’s—whose brands include Douwe Egberts, Kenco, and Peet’s Coffee—will split into two publicly listed companies after the acquisition closes, creating “the world’s #1 pure-play coffee company (“Global Coffee Co.”)” according to a joint statement released by the companies today.
Under the terms of the deal, KDP will pay JDE Peet’s shareholders $31.85 per share in cash, which is a 33% premium over JDE Peet’s 90-day volume-weighted average stock price.
Tim Cofer, CEO of Keurig Dr Pepper told investors, “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. 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.”
Rafa Oliveira, CEO of JDE Peet’s commented, “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.”
Keurig Dr Pepper was established in 2018 after the merger of Keurig Green Mountain and Dr Pepper Snapple.
JDE Peet’s shares increased by 17.18% in premarket trading following the announcement.
By CEO NA Editorial Staff
