Acquisition to create a global coffee leader serving 100+ countries with an unparalleled brand portfolio across all coffee segments, channels and price points Keurig Dr Pepper and JDE Peet’s announced…

Acquisition to create a global coffee leader serving 100+ countries with an unparalleled brand portfolio across all coffee segments, channels and price points

Keurig Dr Pepper and JDE Peet’s announced they have entered into a definitive agreement under which KDP will acquire JDE Peet’s in an all-cash transaction. This exciting deal will create a global coffee champion through the complementary combination of KDP’s Keurig, North America’s leading single-serve coffee platform, with JDE Peet’s worldwide portfolio of beloved coffee brands. After the acquisition closes, KDP plans to separate into two independent, U.S.-listed publicly traded companies, creating a scaled growth challenger in North America’s attractive refreshment beverages market (Beverage Co.) and the world’s #1 pure-play coffee company (Global Coffee Co.).

Under the terms of the transaction, KDP will pay JDE Peet’s shareholders €31.85 per share in cash, a 33 per cent premium to JDE Peet’s 90-day volume-weighted average stock price, representing a total equity consideration of €15.7 billion. JDE Peet’s will also pay a previously declared dividend of €0.36 per share before closing, with no reduction to the offer price.

Strategic Rationale: Transformational Next Step in KDP’s Shareholder Value Creation Journey

Singular opportunity to establish a global coffee leader by combining KDP’s disruptive spirit, next-generation coffee innovations and single-serve leadership with JDE Peet’s nearly 300-year legacy, global reach and top-tier portfolio of brands.

The acquisition of JDE Peet’s is expected to deliver compelling synergies and generate significant value for KDP shareholders.

Planned separation, via a tax-free spin-off of Global Coffee Co., will position Beverage Co. and Global Coffee Co. to win in their respective markets by leveraging operating models optimised to unique category dynamics.

Creates two strategically focused, scaled beverage companies with differentiated shareholder value propositions, featuring distinct growth and capital allocation frameworks designed to deliver sustained and compelling long-term value.

The acquisition of JDE Peet’s will significantly enhance KDP’s coffee positioning, creating a strong, resilient and diversified global portfolio. It will also unlock incremental operating and financial benefits, including approximately $400 million in anticipated cost synergies to be realised over three years and EPS accretion expected to start in year one of the combination.