Keurig Dr Pepper has signed an agreement to buy Dutch JDE Peet’s, owner of Peet’s Coffee, for $ 18 billion, as part of the plans to break down their coffee brands in a separate public company.
Keurig Dr Pepper said it will pay JDE Peet’s 31.85 euros (about $ 37) shareholders per money in cash, a 33% prize on the average price of the last three months.
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Amsterdam -based JDE Peet’s has a market value of about $ 15 billion. Keurig Dr Pepper’s is about $ 50 billion.
Upon closing of this agreement, Keurig Dr Pepper plans to separate in two US -focused companies, one coffee focused on refreshing drinks, including Dr Pepper, 7up, Snapple and energy drinks like Bloom and Ghost. The global coffee company would have approximately $ 16 billion in annual revenue, while the beverage company would have about $ 11 billion in revenue.
Keurig Dr Pepper CEO, Tim Cofer, said the merger will increase the company’s geographical reach. Keurig, for example, is mainly in North America, while JDE Peet’s operates in Europe, Latin America and the Middle East.
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The agreement is transformative for Keurig Dr Pepper and will eventually break the 2018 transaction that placed coffee maker Keurig and Dr Pepper beverage company under the same corporate ceiling. At the time, the transaction was the largest in the world in non -alcoholic beverages.
The Keurig Dr Pepper coffee business, which includes Green Mountain Café and Keurig machines, has been facing difficulties long ago as competition between coffee companies intensified. However, in the most recent quarter, the company reported some improvement in its coffee segment. The company has increased prices twice so far this year. Source: Dow Jones Newswires.
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*Content translated with the aid of artificial intelligence, revised and edited by the Broadcast writing, Real -Time New Time News System.
