Jim Cole/ AP This April 28, 2016, picture reveals bottles of Dr. Pepper on a store rack at Quality Money Market in Concord, N.H.
Monday, Jan. 29, 2018|7:09 a.m.
PLANO, Texas– Keurig will purchase Dr. Pepper Snapple Group, producing a beverage giant with about $11 billion in annual sales.
The business, both the outcome of previous mergers, will bring under one camping tent international brand names like Dr. Pepper, 7UP, Snapple, A&W, Mott’s, Sunkist and Keurig’s single-serve coffee machine.
The business is still significantly outsized by PepsiCo Inc. and Coca-Cola Co., which had sales in 2016 of $63 billion and $41 billion, respectively.
Keurig Green Mountain Inc., which is an independently held business, stated Monday that Dr. Pepper Snapple investors will receive $103.75 per share in a special cash dividend and keep 13 percent of the combined business.
Shares of Dr. Pepper Snapple skyrocketed more than 39 percent before the opening bell.
Keurig CEO Bob Gamgort will lead the new company, called Keurig Dr. Pepper. Larry Young, CEO at Dr. Pepper Snapple will become a director.
Keurig and Dr. Pepper Snapple will continue to lack their existing locations. Keurig is based in Waterbury, Vermont and Dr. Pepper Snapple has headquarters in Plano, Texas.
Keurig was obtained by Europe’s JAB Holding company in 2016 in partnership with the snackmaker, Mondelez International.
JAB will be the controlling shareholder, and Mondelez will hold a stake of about 13 percent to 14 percent.
The deal is anticipated to close in the second quarter, with the business approximating overall debt to be about $16.6 billion at that time.
The acquisition needs to still be approved by investors of Dr. Pepper Snapple Group Inc.