A PYMNTS Company

US: Keurig buys Dr. Pepper Snapple, creating a beverage giant

 |  January 29, 2018

Dr. Pepper Snapple and Keurig Green Mountain are merging. In a statement on Monday, January 29, the companies announced that Keurig had agreed to buy Dr. Pepper Snapple.

The new company will be called Keurig Dr. Pepper, and it is projected to earn US$11 billion in annual revenue. It will be controlled by JAB Holding Company, the family-run investor that took Keurig private in 2015 with a US$13.9 billion buyout. Mondelez International, a snacks maker and partner with JAB in Keurig, will own 13% to 14% of the combined firm.

“We are very excited about the prospect of KDP becoming a challenger in the beverage industry,” Bart Becht, the chairman of Keurig, said in the deal announcement.

The deal comes after years of falling sales at Keurig amid strong competition from other coffee makers. Also, the company has been in the crosshairs of environmentalists because of its plastic K-Cup single-serve coffee pods.

Full Content: CNN

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