PLANO, Texas, and BURLINGTON, Mass. -- Dr Pepper Snapple Group Inc. and Keurig Green Mountain Inc. announced Jan. 29 that the companies have entered into a definitive merger agreement to create Keurig Dr Pepper (KDP), a new beverage company of scale with a portfolio of iconic consumer brands and distribution capability to reach virtually every point-of-sale in North America.
Under the terms of the agreement, which has been unanimously approved by the Dr Pepper Snapple board of directors, Dr Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and retain 13% of the combined company.
KDP will have pro forma combined 2017 annual revenues of approximately $11 billion. This combination of the two beverage companies brings together brands Dr Pepper, 7UP, Snapple, A&W, Mott’s and Sunkist with coffee brand Green Mountain Coffee Roasters and the Keurig single-serve coffee system, as well as more than 75 owned, licensed and partner brands in the Keurig system.
Bob Gamgort, current CEO of Keurig, will be CEO of the combined company, and Ozan Dokmecioglu, current chief financial officer of Keurig, will be its chief financial officer. Dr Pepper Snapple President and CEO Larry Young intends to transition to a role on KDP’s board of directors to help the new management team.
Waterbury, Vt.-based Keurig Green Mountain Inc. is a leader in specialty coffee and single-serve brewing systems. It is owned by JAB Holding Co., a Burlington, Mass.-based conglomerate that invests in companies with premium brands, attractive growth and strong margin dynamics in the consumer goods category.
Dr Pepper Snapple Group is a leading producer of beverages in North America. The Plano, Texas-based company owns seven of the top 10 noncola soft drinks.