Keurig Dr Pepper (KDP) has announced its plan to acquire JDE Peet’s in an all-cash transaction valued at approximately €15.7 billion ($18 billion), offering €31.85 per share—a 33% premium over JDE Peet’s 90-day average price. This deal will create two distinct, publicly listed companies: “Global Coffee Co.,” the world’s largest pure-play coffee company, and “Beverage Co.,” a North American refreshment beverage challenger.
Global Coffee Co. will combine KDP’s leadership in single-serve coffee with JDE Peet’s 300-year legacy and renowned brands, reaching over 100 countries and holding top market positions in 40. With annual net sales of around $16 billion, the new coffee company will boast an unparalleled portfolio across all coffee segments and channels, driving strong profitability and consistent growth. Approximately $400 million in cost savings are anticipated within three years, with earnings per share accretion projected in the first year.
Beverage Co., with annual net sales exceeding $11 billion, will focus on North America’s $300 billion refreshment market, featuring iconic brands such as Dr Pepper, Canada Dry, and 7UP. Its established direct-store-delivery system and capital-efficient growth strategy will support ongoing market expansion and shareholder returns.
The acquisition is expected to be funded through a mix of new debt and cash on hand, with KDP planning to maintain its investment-grade credit rating. The deal, supported by major shareholders holding 69% of JDE Peet’s voting power, is anticipated to close in the first half of 2026, pending customary approvals. The subsequent separation into two companies will follow soon after, subject to board and regulatory approvals.
KEY QUOTES:
“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.”
Tim Cofer, CEO, KDP
“We are excited to join forces with Keurig to chart the future of global coffee by leveraging our combined portfolio of the world’s most beloved coffee brands. 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.”
Rafa Oliveira, CEO, JDE Peet’s
