Keurig Dr Pepper, a U.S. beverage and coffeemaker company with dual headquarters in Burlington, Massachusetts, and Frisco, Texas, has reached a definitive agreement to acquire Dutch coffee and tea producer JDE Peet’s for approximately €15.7 billion (about $18 billion). The acquisition offers €31.85 per share, representing roughly a 20 percent premium over the most recent market price. Keurig Dr Pepper traces its roots to Green Mountain Coffee Roasters, founded in Vermont in 1979, and later merged with Dr Pepper Snapple Group in 2018.
JDE Peet’s, headquartered in Amsterdam, emerged in 2020 from the merger between Jacobs Douwe Egberts and Peet’s Coffee, the latter having been founded in Berkeley, California, in 1966. Under the agreement, Keurig Dr Pepper plans a tax-free split into two independent, publicly listed U.S. companies once the deal closes, expected in early 2026. One entity, named Beverage Co, will focus exclusively on North American refreshment beverages, while the other, Global Coffee Co, will consolidate Keurig’s coffee operations with JDE Peet’s extensive international coffee business.
Leadership for the new entities has been announced: Beverage Co will be helmed by CEO-designate Tim Cofer from Frisco, Texas. Global Coffee Co will be led by Keurig Dr Pepper CFO Sudhanshu Priyadarshi, based in Burlington, Massachusetts, with its international hub in Amsterdam. JDE Peet’s board unanimously approved the deal. Prior to closing, JDE Peet’s shareholders are set to receive a €0.36 dividend per share. Financing is secured through fully committed bridge loans totaling €16.2 billion from MUFG and Morgan Stanley. Shareholders controlling about 69 percent of JDE Peet’s voting rights, including affiliates of JAB Holding, have committed to tender their shares.
Regulatory approvals required for deal completion
Market responses were clear: JDE Peet’s shares surged approximately 18 percent on the announcement, while Keurig Dr Pepper’s U.S.-listed shares declined about 1 to 8 percent, depending on trading venue. Post-transaction, JDE Peet’s will be delisted from Euronext Amsterdam. The companies forecast cost synergies totaling $400 million annually over three years following separation. Global Coffee Co is projected to generate annual net sales of approximately $16 billion, while Beverage Co is expected to oversee over $11 billion in annual sales from its North American beverage portfolio.
The agreement is subject to regulatory approvals in multiple jurisdictions. Under Dutch law, an offer memorandum must be filed and approved by the Netherlands Authority for the Financial Markets. Closing is also contingent on satisfying minimum tender thresholds and obtaining required antitrust and other customary clearances. – By EuroWire News Desk.