S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
BURLINGTON, Mass. - Keurig Dr Pepper (NASDAQ:KDP), a beverage giant with a market capitalization of $47.78 billion and impressive gross profit margins of 54.93%, announced Monday it will acquire coffee company JDE Peet’s (EURONEXT:JDEP) in an all-cash transaction valued at €15.7 billion, with plans to subsequently separate into two independent, publicly traded companies. According to InvestingPro, KDP has demonstrated consistent growth with annual revenues of $15.76 billion and maintains a FAIR financial health rating.
Under the deal terms, KDP will pay JDE Peet’s shareholders €31.85 per share, representing a 33% premium to JDE Peet’s 90-day volume-weighted average stock price. JDE Peet’s will also pay a previously declared dividend of €0.36 per share prior to closing. KDP’s stock currently trades at $35.14, with analysts setting price targets between $34 and $42.
Following the acquisition, KDP plans to split into "Beverage Co.," focused on North American refreshment beverages, and "Global Coffee Co.," which would become the world’s largest pure-play coffee company with approximately $16 billion in annual net sales and operations in more than 100 countries.
The transaction is expected to deliver approximately $400 million in cost synergies over three years and be accretive to earnings per share starting in the first year.
Tim Cofer, KDP’s CEO, will become CEO of Beverage Co., while Sudhanshu Priyadarshi, KDP’s CFO, will lead Global Coffee Co. following the separation.
"Through the complementary combination of Keurig and JDE Peet’s, we are seizing an exceptional opportunity to create a global coffee giant," said Cofer in a statement included in the press release.
The acquisition is expected to close in the first half of 2026, subject to regulatory approvals and other customary closing conditions. The subsequent separation is planned to occur as soon as practicable thereafter through a tax-free spin-off of Global Coffee Co.
The deal has been unanimously approved by JDE Peet’s Board of Directors, and shareholders representing approximately 69% of JDE Peet’s voting power have committed to tender their shares.
KDP will fund the transaction through a combination of new debt and cash on hand, with both resulting companies expected to maintain investment-grade credit profiles. For detailed analysis of this transformative deal and its potential impact on KDP’s financials, InvestingPro subscribers can access the comprehensive Pro Research Report, which provides expert insights on KDP’s strategic positioning and growth prospects.
In other recent news, Keurig Dr Pepper reported its second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.49, outperforming the forecasted $0.47. Additionally, Keurig Dr Pepper’s revenue reached $4.16 billion, exceeding the projected $4.14 billion. These results highlight the company’s strong financial performance in the quarter. Analysts had anticipated these figures, and the company delivered beyond those projections. The positive earnings and revenue results reflect the company’s robust market position. No major mergers or acquisitions were reported in the recent updates. There were also no significant analyst upgrades or downgrades mentioned in the latest news. These developments are part of the ongoing updates concerning Keurig Dr Pepper.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.