Keurig Dr Pepper has announced its agreement to acquire JDE Peet’s NV for €15.7 billion, equivalent to $28.2 billion AUD. The move is intended to strengthen Keurig Dr Pepper’s coffee segment, which has faced challenges recently. The acquisition comes ahead of a planned separation of the company’s operations into two distinct entities. Keurig Dr Pepper is a beverage company that produces a variety of hot and cold drinks. The company aims to be a leader in the beverage industry through innovation and strategic acquisitions.
Under the terms of the agreement, Keurig Dr Pepper will pay €31.85 per share in cash for the Dutch firm. This represents a 20 per cent premium over JDE Peet’s closing price on August 22. The company intends to separate its coffee and soft drinks divisions into two independent, US-listed companies following the completion of the deal next year.
According to Keurig Dr Pepper chief executive Tim Cofer, this acquisition represents “an exceptional opportunity to create a global coffee giant”. The transactions effectively reverse Keurig’s 2018 acquisition of soda maker Dr Pepper, an acquisition that was orchestrated by investment firm JAB Holding in an attempt to establish a leader in both the hot and cold beverage markets.
However, the coffee business has struggled due to increased competition in the US and rising bean prices, while other beverage categories have performed well. The acquisition of JDE Peet’s is seen as a strategic move to address these challenges and position the company for future growth prior to the intended separation.
