Finance
Factbox-Inner workings of Keurig Dr Pepper's $18 billion move for JDE Peet's
Published by Global Banking & Finance Review®
Posted on August 25, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 25, 2025
2 min readLast updated: January 22, 2026
Keurig Dr Pepper plans to acquire JDE Peet's for $18.4 billion, creating two new companies and aiming for significant cost savings.
(Reuters) -Keurig Dr Pepper on Monday announced it would buy Dutch company JDE Peet's for 15.7 billion euros ($18.4 billion) in cash, in a bid to create a global coffee heavyweight.
Here is what is known about the transaction:
THE DEAL'S STRUCTURE:
- In a first step, KDP will buy JDE Peet's for 15.7 billion euros, a deal that is expected to close in the first half of 2026.
- After the purchase, KDP will break itself up into two U.S. listed companies, one focused on refreshment beverages and one on coffee - for now dubbed Beverage Co and Global Coffee Co, respectively.
- The break-up of the combined entity will take place via a spin-off of Global Coffee Co to KDP's shareholders by the end of 2026.
- The transaction will result in cost savings and value creation of $400 million over three years.
- JAB Holding, which owns 4.4% in KDP as well as around 68% in JDE Peet's via its Acorn division, will hold nearly 5% in both entities following the spin-off, it said.
WHAT DO WE KNOW ABOUT BEVERAGE CO?
- More than $11 billion in annual net sales, 88% of which in the United States.
- $3.3 billion in adjusted earnings before interest, tax, depreciation and amortisation.
- Key brands: Dr Pepper, Canada Dry, 7UP and A&W.
- To be led by KDP's current CEO Tim Cofer.
- To be headquartered in Frisco, Texas.
WHAT DO WE KNOW ABOUT GLOBAL COFFEE CO?
- About $16 billion in combined annual net sales, of which 40% in North America and Europe, respectively.
- $3.1 billion in adjusted earnings before interest, tax, depreciation and amortisation.
- According to KDP it will be "the world's largest pure-play coffee company".
- Key brands: Keurig, Jacobs, L'OR and Peet's.
- To be led by KDP's current CFO Sudhanshu Priyadarshi.
- Global headquarters in Burlington, Massachusetts; international headquarters in Amsterdam, the Netherlands.
(Compiled by Christoph Steitz, Editing by Louise Heavens)
Keurig Dr Pepper announced it would buy JDE Peet's for 15.7 billion euros, which is approximately $18.4 billion.
The deal is expected to close in the first half of 2026.
After the purchase, KDP will break itself up into two U.S. listed companies: Beverage Co and Global Coffee Co.
The transaction is expected to result in cost savings and value creation of $400 million over three years.
Beverage Co will be headquartered in Frisco, Texas, while Global Coffee Co will have its global headquarters in Burlington, Massachusetts, and international headquarters in Amsterdam, the Netherlands.
Explore more articles in the Finance category
