Keurig Dr Pepper secures acquisition of JDE Peet’s in US$17.4B deal

Keurig Dr Pepper (KDP) will acquire JDE Peet’s in an all-cash deal valued at €15.7 billion (US$17.4 billion). The agreement sets the stage for KDP to later split into two publicly traded companies, creating a dedicated global coffee business and a separate North American beverages company.

Under the terms, JDE Peet’s shareholders will receive €31.85 (US$35.30) per share, a 33% premium to its 90-day volume-weighted average. A previously declared dividend of €0.36 (US$0.40) per share will also be paid before closing, with no adjustment to the offer price.

The companies say the transaction will bring about a combined global coffee platform. JDE Peet’s portfolio includes Jacobs, L’OR, and Peet’s, while KDP operates North America’s largest single-serve system through its Keurig brand. Together, they plan to establish “Global Coffee Co.,” which will operate across more than 100 countries with projected annual sales of about US$16 billion.

Following the acquisition, KDP intends to separate into two listed entities. Global Coffee Co. will focus on the coffee category, while “Beverage Co.” will target the North American refreshment beverage market, with expected annual sales of US$11 billion.

The companies expect to generate around €400 million (US$444 million) in cost synergies within three years, with earnings per share accretion forecast to begin in the first year of integration.

“This marks a transformational moment in the beverage industry, as we create two winning companies, including a new global coffee champion,” says Tim Cofer, CEO of KDP.

Rafa Oliveira, CEO of JDE Peet’s, adds: “This highly complementary transaction will deliver an attractive premium for our shareholders and create compelling growth opportunities for our employees, customers, and other stakeholders.”

KDP will finance the purchase through a mix of debt and cash on hand. JDE Peet’s board has unanimously approved the deal, which is expected to close in the first half of 2026, pending regulatory approvals and customary conditions.

Global Coffee Co. will be headquartered in Burlington, Massachusetts, with international headquarters in Amsterdam. Beverage Co. will be based in Frisco, Texas.