Dr Pepper Snapple and Keurig announced in a press release today that the massive beverage brands have agreed to merge, creating a global thirst-quenching entity to be known as Keurig Dr Pepper – worth $11 billion in annual sales.
In a deal expected to close in the second quarter of 2018, Dr Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and keep 13% of the combined company.
The single-serving coffee maker and 75 Keurig brands, partners, and licensees, along with Green Mountain Coffee Roaster will be combined into a single portfolio of global beverage giants that now also includes Dr Pepper, 7UP, Snapple, A&W, Mott’s and Sunkist.
“Our view of the industry through the lens of consumer needs, versus traditional manufacturer-defined segments, unlocks the opportunity to combine hot and cold beverages and create a platform to increase exposure to high-growth formats,” said
Bob Gamgort, Chief Executive Officer of Keurig. “The combination of Dr Pepper Snapple and Keurig will create a new scale beverage company which addresses today’s consumer needs, with a powerful platform of consumer brands and an unparalleled distribution capability to reach virtually every consumer, everywhere.”