Keurig Dr Pepper and Jde Peet's have announced a definitive agreement under which KDP will acquire Jde in an all-cash transaction. The transaction aims to create a global coffee giant through the complementary combination of KDP's Keurig, a single-serve coffee platform in North America, with Jde Peet's global portfolio of coffee brands.

Following the completion of the acquisition, KDP plans to split into two independent, publicly traded companies in the United States, creating a large-scale growth company in the North American soft drinks market (Beverage Co.) and a coffee-only company aiming for global market leadership (Global Coffee Co.).

Under the transaction, KDP will pay Jde Peet's shareholders €31.85 per share in cash, a 33% premium to Jde Peet's 90-day volume-weighted average price, for a total consideration of €15.7 billion. Jde Peet's will also pay a dividend of €0.36 per share, as previously declared prior to closing, without any reduction in the offering price.

According to the parties' objectives, the acquisition of Jde Peet's should strengthen KDP's position in the coffee industry, creating "a strong, resilient, and diversified global portfolio." The acquisition is also expected to unlock additional operational and financial benefits, including approximately $400 million in cost synergies expected to be realized over three years and accretive earnings per share (EPS) expected to begin in the first year of integration. The two companies expect this partnership to result in cost savings of approximately $400 million over three years.