Keurig Dr Pepper to buy Dutch coffee company JDE Peet’s in $18 billion deal
Poland – 2024/12/08: In this photo picture, Keurig Dr Pepper Company logo is displayed on a smartphone screen. (Piotr SWAT/SOPA IMAGES/LIGHTOKET Via Getty Images)
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The two companies said on Monday that Keurig Dr Pepper will buy Dutch Coffee and Tea company JDE Peet’s with an agreement of approximately 18 billion dollars to support the US giant’s fighting coffee business.
The agreement was first reported Wall Street Journal.
Keurig Dr Pepper will pay 31.85 euros per share to JDE Peet’s shareholders, and will represent a 33% premium in the 90 -day volume average stock price of the Netherlands, which represents a total of 15.7 billion euros ($ 18.4 billion). Meanwhile, JDE Peet’s will pays a dividend with a 0.36 euros per share before the closing of the agreement.
The inheritance is expected to produce cost synergy of $ 400 million for three years.
JDE Peet’s increased by 17.18% per London time at 08:30 (03:30 meat).
Dr. Pepper, 7up, Snapple and Green Mountain Coffee, the owner of brands such as Keurig Dr Pepper, single -service coffee capsules and Keurig coffee producers due to the decrease in the shipment of 0.2% to 900 million dollars in the second quarter.
Keurig Dr Pepper raises the charm with frugal shopping who prefer to drink their coffee at home, while at the same time, Starbucks and Dunkin are offered cold coffee offers to attract customers.
Following the acquisition of JDE Peet, Keurig Dr Pepper plans to divide drinks and coffee units as two separate, US -listed company at the earliest opportunity. Such a step will effectively relax 2018 merger Between Keurig and Dr Pepper Snapple, he created his third largest beverage company in North America with approximately $ 11 billion.
After the episode, the emerging coffee company is expected to earn $ 16 billion in net sales and will be directed by the current Keurig Dr Pepper Chief Finance Manager Sudhanshu Priyadarshi.
Meanwhile, the beverage company is expected to be $ 11 billion in annual net sales and will be managed by Tim Cofer, CEO of Keurig Dr Pepper CEO on separation.
JDE Peet’s CEO Rafael Oliveira will be in charge to turn to the Dutch Coffee Company until the purchase is closed.
– CNBC’s Victor Loh contributed to this report
