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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
Keurig Dr Pepper will buy a Dutch coffee group for over $18 billion and | |
split into two companies | |
By Lianne Kolirin, CNN | |
Updated: | |
4:12 PM EDT, Mon August 25, 2025 | |
Source: CNN | |
Keurig Dr Pepper will acquire JDE Peet’s – whose brands include | |
Douwe Egberts, Kenco and Peet’s Coffee – for more than $18 billion | |
and split into two listed businesses. | |
The company behind Dr Pepper and 7Up drinks and Keurig coffee products | |
is set to separate into a soft drinks company and a coffee group, | |
according to a joint published Monday. | |
Keurig Dr Pepper will pay the shareholders of the Dutch company | |
€31.85 ($37.26) per share in cash, representing a total purchase | |
price of €15.7 billion ($18.4 billion.) | |
Once the transaction is complete, the aim is to create two separate | |
companies: Beverage Co. and Global Coffee Co. | |
Shares of JDE Peet’s traded in Amsterdam soared 17.48% on Monday | |
after the deal was announced. It was the stock’s best day on record | |
as investors snapped up shares ahead of the acquisition. | |
Meanwhile, shares of Keurig Dr Pepper () fell 11.48%. It was the | |
stock’s worst day since March 2020. | |
“While the transaction is complex and involves a large acquisition | |
(typically not viewed favorably by the market), we see significant | |
value in the separation of the Coffee & Beverage businesses,” | |
analysts at Citi said in a note. | |
Dr Pepper was the second-most popular soda in the United States last | |
year, below just Coca-Cola and . But coffee is even more popular with | |
Americans, who drink 516 million cups every day. | |
The US is the largest importer of coffee in the world. Climate change, | |
world conflicts, tariffs imposed by President Donald Trump and growing | |
demand are all making the commodity more expensive, with prices almost | |
doubling in the past five years. | |
“This is the right time for this transaction,” Tim Cofer, the CEO | |
of Keurig Dr Pepper, said in the statement, noting the company’s | |
position “of operational and financial strength, momentum across our | |
evolved portfolio and increasing coffee category resilience.” | |
Newcomer Global Coffee Co., with around $16 billion in expected annual | |
sales, will be the world’s largest “pure-play” coffee company, | |
selling coffee in more than 100 countries, according to the statement. | |
The combined business will be split “as soon as practicable.” | |
Beverage Co. will have Cofer at the helm, while Sudhanshu Priyadarshi, | |
Keurig Dr Pepper’s chief financial officer, will head up Global | |
Coffee Co. | |
Keurig Dr Pepper was formed in 2018 following the merger of Keurig | |
Green Mountain and Dr Pepper Snapple. | |
CNN’s John Towfighi and Rosa de Acosta contributed to this report. | |
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