Keurig Dr Pepper to acquire JDE Peet’s for $18.4bn

November 2025 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

November 2025 Issue

In a transaction set to reshape the global coffee industry, US beverage and coffeemaker conglomerate Keurig Dr Pepper (KDP) will acquire multinational coffee and tea company JDE Peet’s in an all-cash deal valued at €15.7bn (approximately $18.4bn).

Under the terms of the definitive agreement, KDP will pay JDE Peet’s shareholders €31.85 per share, representing a 33 percent premium to JDE Peet’s 90-day volume-weighted average stock price. JDE Peet’s will also pay a previously declared dividend of €0.36 per share prior to closing, with no reduction to the offer price.

The acquisition will significantly strengthen KDP’s coffee portfolio, combining its North American single-serve leadership with JDE Peet’s global reach and brand diversity. The merged entity will unlock an estimated $400m in cost synergies over three years, with earnings per share accretion expected from the first year of integration.

Following the acquisition, which is anticipated to close in the first half of 2026, KDP plans to separate into two independent, publicly traded companies listed in the US: Beverage Co., focused on North American refreshment beverages, and Global Coffee Co., a pure-play coffee company.

“This transaction marks a transformational moment in the beverage industry, as we build on KDP’s disruptive legacy by creating two winning companies, including a new global coffee champion,” said Tim Cofer, chief executive of KDP. “Through the complementary combination of Keurig and JDE Peet’s, we are seizing an exceptional opportunity to create a global coffee giant.”

The transaction remains subject to final approval by KDP’s board of directors and other customary conditions, including regulatory clearance and approval of the offer memorandum by the Dutch Authority for the Financial Markets.

“We are excited to join forces with Keurig to chart the future of global coffee by leveraging our combined portfolio of the world’s most beloved coffee brands,” said Rafa Oliveira, chief executive of JDE Peet’s. “This highly complementary transaction will deliver an attractive premium for our shareholders and will create compelling future growth opportunities for our employees, customers and other stakeholders.”

Upon completion of the separation, Mr Cofer will become chief executive of Beverage Co., while Sudhanshu Priyadarshi, currently chief financial officer at KDP, will assume leadership of Global Coffee Co. Mr Oliveira will continue to serve as chief executive of JDE Peet’s until the acquisition closes.

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

Serving as financial advisers to KDP are Lazard and Morgan Stanley & Co. LLC, with Paul, Weiss, Rifkind, Wharton & Garrison LLP and Stibbe N.V. acting as legal advisers. KDP has secured fully underwritten financing commitments from affiliates of Morgan Stanley and Mitsubishi UFJ Financial Group. JDE Peet’s is advised exclusively by BofA Securities, with A&O Shearman providing legal counsel.

As of September 2025, both companies have confirmed progress on the offer preparations. A formal request for approval of the offer memorandum will be submitted to the Dutch regulator no later than 16 November 2025. The dividend payment of €0.36 per share is scheduled for 23 January 2026, though JDE Peet’s may pay it earlier.

KDP will host an investor update in New York on 27 October 2025 to provide further details on the financial structure, synergy expectations and capital allocation strategies for both entities.

Mr Cofer concluded: “By creating two sharply focused beverage companies with attractive and tailored growth propositions and capital allocation strategies, we are poised to generate significant shareholder value in both the near and long term.”

Fraser Tennant