Keurig Dr Pepper announced on Monday a $18 billion cash acquisition of JDE Peet's, the parent company of Peet's Coffee.
The deal, valued at €31.85 per share, represents a 20% premium over JDE Peet's closing price last Friday.
This acquisition sets the stage for a significant corporate restructuring.
Strategic Restructuring Unveiled
Keurig Dr Pepper plans to divide into two independent, publicly traded entities following the acquisition.
One company will concentrate on coffee brands, including Peet's, Green Mountain, and Keurig.
The other will focus on soft drinks and energy drinks, such as Dr Pepper, 7Up, Snapple, and Ghost.
This split aims to streamline operations and enhance focus within the nonalcoholic beverage sector.
The acquisition aligns with existing ties, as JAB Holding, a European investment firm, holds nearly 70% of JDE Peet's voting power and about 4% of Keurig Dr Pepper.
KDP's shares fell over 8% in premarket trading on Monday, reflecting market reactions to the deal.
Meanwhile, industry developments continue, with reports indicating Coca-Cola is exploring a sale of its U.K.-based coffee chain, Costa.
This move signals broader shifts within the global beverage industry.