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
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.