Drinks giant Keurig Dr Pepper will acquire European coffee company JDE Peet’s for almost €16 billion, the two firms said on Monday.
The purchase, first reported by the Wall Street Journal, will lead to a break-up of the firms’ coffee and soft-drinks units, dismantling the 2018 merger that united Keurig and Dr Pepper.
JDE Peet’s, a Dutch firm that owns brands including Peet’s Coffee and Kenco, had a market value of $15bn or €13bn according to Friday’s closing price. Keurig Dr Pepper, owner of brands like Schweppes, 7UP, and Dr Pepper, had a market value of $47bn or €40bn.
Under the terms of the deal, 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 stock price, representing a total equity consideration of €15.7bn. JDE Peet’s will also pay a previously declared dividend of €0.36 per share prior to closing, with no reduction to the offer price.
The takeover is expected to generate $400 million (€342mn) in cost synergies over three years.
Keurig Dr Pepper shares have risen more than 10% this year, buoyed by strong drink demand, with US sales growing by almost 11% from a year earlier to $2.7bn (€2.3bn).
Even so, the firm’s coffee sales have underperformed due to fierce competition, and CEO Tim Cofer recently warned that US tariffs on coffee bean imports would hit margins.
On 6 August, US President Donald Trump notably placed a 50% duty on coffee beans imported from Brazil.
In July, Keurig Dr Pepper said that its coffee unit would see “subdued” performance for the rest of fiscal 2025, a trend partially linked to inflation and tariffs.
While the firms are now preparing to merge operations, the two companies already share common ownership. JAB Holdings, a German investment firm, retains a significant minority stake in Keurig Dr Pepper, while also holding majority control of voting power at JDE Peet’s.
