Dr Pepper Snapple announced Monday it will merge with single-serve home brewer Keurig Green Mountain, creating a new beverage giant with $11 billion in combined annual revenues, the drink companies said in a statement. The new company would bring the popular home brewer and Bai, 7UP, Sunkist and A&W under one roof.
Under the terms of the agreement, Dr Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and retain 13% of the combined company.
“This transaction will deliver significant and immediate value to our shareholders, along with the opportunity to participate in the long-term upside potential of our combined company and attract new brands and beverage categories to our platform in a fast-changing industry landscape,” Larry Young, president and chief executive officer of Dr Pepper Snapple, said in a statement.
Under the merger, the companies would combine to create a new blockbuster drinks firm offering both traditional sodas, on-trend coffee drinks and better-for-you beverages under one umbrella. Keurig Dr Pepper will offer a large array of products that people can consume throughout the day, from morning coffee to a late-night soda, while accessing a vast distribution system.
The deal would create a “powerful beverage platform,” Dirk Van de Put, CEO of Mondelez International, said in a statement.The snacks maker will hold a 13% to 14% stake in the new firm, The Wall Street Journal said.
Read more at Food Dive: https://www.fooddive.com/news/dr-pepper-snapple-merging-with-keurig-green-mountain/515767/