JAB to sell 75 million shares of Keurig Dr Pepper

Published 01/05/2025, 21:42
JAB to sell 75 million shares of Keurig Dr Pepper

BURLINGTON, Mass. - Keurig Dr Pepper (NASDAQ: KDP), currently valued at $46.34 billion by market capitalization, disclosed today that JAB Holding Company s.a.r.l. plans to sell 75,000,000 shares of its common stock in a registered public offering. Once the sale is concluded, JAB’s beneficial ownership in KDP will decrease to about 4.4% of the company’s outstanding common stock.

This move is accompanied by a 60-day lock-up agreement between JAB and the underwriter, J.P. Morgan, which indicates that JAB will not sell additional shares during this period.

The offering of shares is based on a registration statement and prospectus previously filed with the U.S. Securities and Exchange Commission on August 19, 2022. Potential investors are advised to read the prospectus and related documents filed with the SEC to obtain more complete information about the issuer and this offering.

Keurig Dr Pepper is a major North American beverage company with a diverse portfolio that includes over 125 owned, licensed, and partner brands. The company’s annual revenue reaches $15.52 billion, with impressive gross profit margins of 55.25%. According to InvestingPro data, KDP has consistently raised its dividend for 4 consecutive years, currently offering a 2.66% yield. The company holds leading positions in several beverage categories, including the top single serve coffee brewing system in the U.S. and Canada.

The announcement includes forward-looking statements, which are based on current management expectations and are subject to uncertainties and changes in circumstances. These statements do not guarantee future performance, and actual results could vary materially from those anticipated. For deeper insights into KDP’s financial health and future prospects, InvestingPro subscribers can access comprehensive analysis, including 8 additional ProTips and detailed valuation metrics in the Pro Research Report.

Investors and media interested in further details can refer to the contact information provided by Keurig Dr Pepper’s Investor Relations and Media Relations teams. This press release, based on the company’s statement, does not constitute an offer to sell the securities nor a solicitation of an offer to buy in any state or jurisdiction where such would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

In other recent news, Keurig Dr Pepper Inc. reported a strong performance in the first quarter of 2025, with earnings per share (EPS) of $0.42, surpassing the forecast of $0.38. The company also exceeded revenue expectations, reporting $3.64 billion compared to the anticipated $3.56 billion. This robust financial outcome was marked by a 6% net sales growth and a 10% increase in comparable EPS, allowing the company to maintain its full-year guidance for mid-single-digit revenue growth and high-single-digit EPS growth. HSBC analyst Sorabh Daga upgraded Keurig Dr Pepper’s stock rating from Hold to Buy, raising the price target to $42, reflecting confidence in the company’s financial health and market position.

Additionally, Keurig Dr Pepper announced changes to its board of directors, transitioning Robert Gamgort to non-employee Chairman and appointing Michael Van de Ven and Lawson Whiting as independent directors. These board adjustments align with the company’s governance practices to support its strategic direction. The company’s US Refreshment Beverages segment showed strong growth, while the US Coffee segment faced challenges, particularly due to green coffee inflation and tariff impacts. Despite these challenges, the company is focused on long-term growth initiatives, including premium and cold beverage options.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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