Sector News

Dr Pepper Snapple and Keurig Green Mountain to merge

January 29, 2018
Food & Drink

Dr Pepper Snapple Group Inc. and Keurig Green Mountain announced plans Monday to merge, creating Keurig Dr Pepper.

Dr Pepper Snapple shareholders will receive $103.75 per share as a special cash dividend and hold on to 13% of the newly merged company. Keurig shareholders will hold the other 87%. Dr Pepper Snapple shares shot up 39% in premarket trading after the announcement.

The combined company would have pro forma revenue of about $11 billion. Keurig Dr Pepper brands would include the namesake Dr Pepper soft drinks, 7 Up, Sunkist and Green Mountain Coffee Roasters, which includes the Keurig single-serve coffee business.

Global investment firm JAB Holding Co. will make a $9 billion equity investment as a part of the transaction financing, and will be the controlling shareholder when the transaction closes. Mondelez International Inc., JAB’s partner in Keurig, is slated to have about a 13% to 14% stake in the merged company.

Mondelez shares are up 0.7% in premarket trading. Keurig Dr Pepper will target $600 million in synergies on an annualized basis by 2021. Keurig went private in 2016. Dr Pepper Snapple shares are up 6.2% over the past year, while the S&P 500 index is up 25.2% for the period.

By Tonya Garcia

Source: MarketWatch

comments closed

Related News

June 3, 2023

Changing of the guard at consumer goods companies: New finance chiefs for Nestlé and Unilever

Food & Drink

After eight years with Nestlé, François-Xavier Roger, executive vice president and chief financial officer (CFO), has decided to leave the company to pursue new professional challenges, making way for finance boss Anna Manz. Meanwhile, Unilever announced that Graeme Pitkethly, CFO, will retire by the end of May 2024, and the hunt is on for his successor.

June 3, 2023

Bacardi appoints new director to board

Food & Drink

International spirits company Bacardi Limited has announced the appointment of Alicia Enciso to its board of directors. Enciso joins with more than 30 years of experience with multinational Fortune 100 Companies in the food and beverage sector with roles as general manager, president, chief marketing officer and e-business officer.

June 3, 2023

What’s bubbling in beverages? Novel sensations, sugar reduction, botanicals and bold colors drive innovation

Food & Drink

According to Innova Market Insights, when it comes to beverages, consumers are willing to pay more for what they value most, despite rising inflation. Additionally, consumers want brands that respond to their core values and have the benefits they seek, such as sustainability and functional ingredients.

How can we help you?

We're easy to reach