Factbox: Nuts and bolts of Keurig Dr Pepper's $18.4 billion move for JD Peet's
25/08/2025 11:04
Adds details on deal timing in paragraph 5, details on profits and sales splits in paragraphs 8-9, 13-14 Aug 25 (Reuters) - Keurig Dr Pepper KDP.O on Monday announced it would buy Dutch company JDE Peet's JDEP.AS for 15.7 billion euros ($18.4 billion) in cash, in a bid to create a global coffee heavyweight. Here is what is known about the transaction: THE DEAL'S STRUCTURE: - In a first step, KDP will buy JDE Peet's for 15.7 billion euros, a deal that is expected to close in the first half of 2026. - After the purchase, KDP will break itself up into two U.S. listed companies, one focused on refreshment beverages and one on coffee - for now dubbed Beverage Co and Global Coffee Co, respectively. - The break-up of the combined entity will take place via a spin-off of Global Coffee Co to KDP's shareholders by the end of 2026. - The transaction will result in cost savings and value creation of $400 million over three years. - JAB Holding, which owns 4.4% in KDP as well as around 68% in JDE Peet's via its Acorn division, will hold nearly 5% in both entities following the spin-off, it said. WHAT DO WE KNOW ABOUT BEVERAGE CO? - More than $11 billion in annual net sales, 88% of which in the United States. - $3.3 billion in adjusted earnings before interest, tax, depreciation and amortisation. - Key brands: Dr Pepper, Canada Dry, 7UP and A&W. - To be led by KDP's current CEO Tim Cofer. - To be headquartered in Frisco, Texas. WHAT DO WE KNOW ABOUT GLOBAL COFFEE CO? - About $16 billion in combined annual net sales, of which 40% in North America and Europe, respectively. - $3.1 billion in adjusted earnings before interest, tax, depreciation and amortisation. - According to KDP it will be "the world's largest pure-play coffee company". - Key brands: Keurig, Jacobs, L'OR and Peet's. - To be led by KDP's current CFO Sudhanshu Priyadarshi. - Global headquarters in Burlington, Massachusetts; international headquarters in Amsterdam, the Netherlands. (Compiled by Christoph Steitz, Editing by Louise Heavens) ((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))