Keurig to Acquire Dr Pepper Snapple Group
WATERBURY, Vt. and PLANO, Texas — Keurig is buying Dr Pepper Snapple Group, bringing together the make-at-home coffee brand with the company behind Dr Pepper soda, Mott’s apple juice and Snapple iced teas.
The transaction will offer “hot and cold beverages to satisfy every consumer throughout the day,” according to Dr Pepper Snapple Chief Executive Larry Young.
Waterbury-based Keurig Green Mountain Inc., which is a privately held company, is known for its single-serve coffee makers. It also sells coffee pods that are sold in stores under the Green Mountain and Donut Shop name.
The combined company, Keurig Dr Pepper, will have about $11 billion in annual sales, which is smaller than PespiCo Inc. and The Coca-Cola Co., which had sales of $63 billion and $41 billion in 2016, respectively, reported The Associated Press.
Dr Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and keep 13 percent of the combined company. Dr Pepper Snapple Group Inc. shares soared 25 percent to $119.20 on Jan. 29.
Keurig was acquired by Europe’s JAB Holding company in 2016 in a partnership with snack maker Mondelez International. JAB will be the controlling shareholder, and Mondelez will hold a stake of about 13 percent to 14 percent, AP reported.
The deal is expected to close in the second quarter. Shareholders of Dr Pepper Snapple still must approve the deal. Keurig CEO Bob Gamgort will lead the new company and Young will become a director.
Company headquarters won’t change: Keurig will remain in Waterbury and Dr Pepper Snapple will stay in Plano.