Summary
Keurig Dr Pepper plans to separate into two companies after acquiring Peet’s Coffee in an $18 billion deal. One of the new companies will focus on coffee, while the other will focus on cold drinks like Dr Pepper and 7UP. The separation aims to enhance focus and flexibility in each market.
Key Facts
- Keurig Dr Pepper will split into two companies after buying Peet’s Coffee for $18 billion.
- One company will focus on coffee; the other will sell drinks like Dr Pepper and energy drinks.
- The split reverses the 2018 merger of Keurig and Dr Pepper.
- Shares of Keurig Dr Pepper fell by 7% after the announcement.
- The coffee business merger includes brands like L’OR, Jacobs, and Douwe Egberts.
- The company anticipates saving $400 million over three years due to this merger.
- Keurig Dr Pepper expects the new structure to help with global sales and stabilize against U.S. tariffs.
- Once separated, the coffee business will have headquarters in Burlington, Mass. and Amsterdam.
