BURLINGTON, Mass., and PLANO, Texas -- New company Keurig Dr Pepper on July 9 completed the previously announced merger between beverage companies Keurig Green Mountain and Dr Pepper Snapple Group. The transaction creates the seventh-largest company in the U.S. food and beverage sector and third-largest beverage company in North America, with annual revenues of about $11 billion.
“The combination of these two great companies creates the scale, portfolio and selling and distribution capabilities to compete differently in the beverage industry," Keurig Dr Pepper CEO Bob Gamgort. "With a large stable of iconic brands and the leading single-serve coffee brewing system on the market, KDP has the ability to satisfy any beverage need or consumption occasion—hot or cold, at work or at play, at home or on the go—and the capability to get our brands to consumers virtually anytime and anywhere they purchase beverages. I am honored to lead this great team and excited that together we will challenge this industry in a new way.”
Shares in Keurig Dr Pepper began trading on the New York Stock Exchange on July 10 under the ticker symbol KDP.
Under the terms of the merger agreement, Dr Pepper Snapple shareholders will receive a special cash dividend of $103.75 per share on July 10 to shareholders of record on the July 6, 2018, record date, the trading day immediately prior to the closing date.
The new company combines Waterbury, Vt.-based Keurig Green Mountain Inc., a leader in specialty coffee and single-serve brewing systems, with Dr Pepper Snapple Group (DPSG), Plano, Texas, a leading producer of beverages in North America. DPSG owns seven of the top 10 noncola soft drinks. Keurig Green Mountain 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.
Logo courtesy of Keurig Dr Pepper