Discover why Keurig Dr Pepper’s $18B acquisition of JDE Peet’s sets the stage for two new companies: Global Coffee Co. and Beverage Co.
Table of Contents
| 📑 Deal Specifications – Keurig Dr Pepper & JDE Peet’s | |
|---|---|
| Acquisition Price | €15.7 Billion (~$18.4 Billion) |
| Offer Per Share | €31.85 per share (20–33% premium) |
| Buyer | Keurig Dr Pepper (KDP) |
| Target | JDE Peet’s (Coffee Business) |
| Deal Structure | Split into 2 entities: • Global Coffee Co • Beverage Co |
| Global Coffee Co | $16 Billion annual sales, 100+ countries |
| Beverage Co | $11 Billion annual sales, U.S. focused |
| Leadership | • Tim Cofer – CEO, Beverage Co • Sudhanshu Priyadarshi – CEO, Global Coffee Co |
| Expected Synergies | ~$400 Million cost savings within 3 years |
| Valuation Potential | Could exceed $100 Billion vs ~$83B current |
| Market Reaction | KDP stock fell ~8%, JDE Peet’s rose ~16–17% |
| Completion Timeline | Expected close H1 2026 |
Keurig Dr Pepper (KDP)
Keurig Dr Pepper (KDP) has just dropped major news: it’s set to acquire JDE Peet’s—owner of brands like Peet’s Coffee, Douwe Egberts, and Kenco—for around €15.7 billion (about $18 billion). The move signals a bold strategic pivot: after the acquisition, KDP will split into two publicly traded companies—a coffee-focused entity and a beverage-focused one. ReutersMarketWatch
Why This Deal Matters (Keurig Dr Pepper)
- Premium Acquisition: KDP will pay €31.85 per share, a ~20–33% premium on JDE Peet’s stock New York PostMarketWatchAxios.
- A Two-Pronged Strategy:
- Global Coffee Co.: Headquartered in Burlington, MA, and Amsterdam. Led by CFO Sudhanshu Priyadarshi, it will become the world’s largest “pure-play” coffee company with sales of around $16 billion annually and operations in over 100 countries AP NewsHouston ChronicleKeurig Dr PepperNew York Post.
- Beverage Co.: Based in Frisco, Texas, led by CEO Tim Cofer, this unit will focus on soft drinks, energy beverages, and refreshment brands like Dr Pepper, 7UP, Snapple—and expected to generate roughly $11 billion in annual revenue New York PostAP NewsKeurig Dr Pepper.
- Cost Synergies & Valuation Uplift: KDP anticipates around $400 million in cost synergies over three years, and analysts believe splitting the business could unlock over $100 billion in combined enterprise value, compared to ~$83 billion as a single entity ReutersMarketWatch.
- Market Reaction: KDP shares dropped ~8% post-announcement, while JDE Peet’s stock jumped ~17%–16% ReutersMarketWatch.
- Deal Timeline: The acquisition is expected to close in H1 2026, followed by the spin-offs “as soon as practicable” AP NewsYahoo FinanceKeurig Dr Pepper.
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- “Global Coffee Co vs Beverage Co split”
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- “Keurig split into beverage and coffee companies”