Keurig Dr Pepper Set To Buy JDE Peet's For Over $18 Billion And Split Into Two Companies – CoffeeTalk

Keurig Dr Pepper is set to acquire JDE Peet’s for over $18 billion, splitting the company into a soft drinks company and a coffee group. The Dutch company will pay €31.85 ($37.26) per share in cash, representing a total purchase price of €15.7 billion ($18.4 billion). The aim is to create two separate companies: Beverage Co. and Global Coffee Co. After the transaction is complete, the combined business will be split “as soon as practicable.” Shares of JDE Peet’s traded in Amsterdam soared 17.48% on Monday after the deal was announced, while shares of Keurig Dr Pepper fell 11.48%. Analysts at Citi see significant value in the separation of the Coffee & Beverage businesses. The US is the largest importer of coffee, with prices almost doubling in the past five years due to climate change, world conflicts, tariffs imposed by President Donald Trump, and growing demand. Tim Cofer, CEO of Keurig Dr Pepper, believes this is the right time for the transaction, citing the company’s operational and financial strength, momentum across its evolved portfolio, and increasing coffee category resilience.

Read More @ CNN