This audio is generated automatically. Please let me know if you have any comments.
Keurig Dr. Pepper has arrived! $7 billion in capital from private equity funds Financing the $18 billion acquisition of JDE Peet’s. The funding comes as a reassurance to investors who had questioned the drinks giant’s plans to split into two independent companies following the acquisition.
The company also announced Monday that CFO Sudhanshu Priyadarshi, who was set to become CEO of the planned coffee spinoff, will no longer hold that position. Keurig Dr Pepper has begun a search to fill that role.
Keurig Dr Pepper has carefully considered shareholder feedback and is “responding with decisive action,” including new investments and a new approach to leadership structure, CEO Tim Cofer said in a statement Monday.
“We are confident that this transaction will enable KDP to create significant shareholder value, and we have a solid plan in place to ensure success,” said Cofer, who is expected to lead the beverage spinoff of Keurig Dr Pepper, including brands such as Snapple and 7UP.
This new investment was jointly led by Apollo and KKR. With the participation of Goldman Sachs. company You will receive preferred stock of Keurig Dr Pepper. The shares have a conversion price of $37.25 and pay an annual dividend.
Keurig Dr Pepper will use the money to reduce net leverage following the purchase. GOES feet. The acquisition is expected to be completed in the first half of 2026.
Once the deal is complete, Keurig Dr Pepper plans to combine its coffee business with JDE Peet’s and spin off the companies to create the world’s largest pure-play coffee business.
Splitting will relax 2018 deal combining Dr Pepper and Keurig Green MountainIt created a massive beverage conglomerate with a portfolio encompassing coffee, Bai, 7UP, Sunkist and A&W.
According to reports earlier this month Activist Investor Starboard Value Keurig builds stake in Dr Pepper amid pushback over proposed deal. Shares of major beverage companies fall More than 17% Announcement next week.
This private equity investment was announced on the same day that Keurig Dr Pepper announced its third quarter results.
During that period, the company Generated $4.3 billion Net sales increased 10.7% compared to the previous year. This included growth in both its coffee and beverage businesses of 1.5% and 14.4% respectively.
explanation: The headline on this story has been updated to more clearly reflect the nature of Keurig Dr Pepper’s latest funding.
