In a landmark move set to reshape the global beverage industry, Keurig Dr Pepper (KDP) has announced a definitive agreement to acquire JDE Peet’s, the world’s largest pure-play coffee and tea company. The all-cash transaction is valued at approximately €15.7 billion, a deal that will subsequently lead to the formation of two independent, publicly traded companies.
According to a joint press release issued on August 25, 2025, KDP will pay JDE Peet’s shareholders €31.85 per share, representing a 33% premium over the company’s 90-day volume-weighted average stock price. The acquisition, which has been unanimously approved by JDE Peet’s Board of Directors, is expected to close in the first half of 2026, pending regulatory approvals and other customary conditions.
Following the acquisition, KDP plans a strategic separation into two distinct entities, each tailored to dominate its respective market. The first, temporarily dubbed “Global Coffee Co.,” will merge KDP’s Keurig single-serve platform with JDE Peet’s extensive international portfolio. This new entity is poised to become the world’s number one pure-play coffee company, with combined annual net sales of approximately $16 billion. Its portfolio will feature powerhouse brands such as Keurig, Jacobs, L’OR, and Peet’s, with a market presence in over 100 countries. Sudhanshu Priyadarshi, KDP’s current CFO, is slated to become CEO of the new coffee giant, which will have its global headquarters in Burlington, Massachusetts, and an international base in Amsterdam.
The second company, referred to as “Beverage Co.,” will operate as a scaled challenger in the North American refreshment beverage market, with annual net sales exceeding $11 billion. This entity will retain iconic brands like Dr Pepper, Canada Dry, 7UP, A&W, and Snapple, along with its successful partnerships in high-growth categories. Current KDP CEO Tim Cofer will lead Beverage Co., which will be headquartered in Frisco, Texas.
The strategic rationale behind the complex transaction is to create two highly focused companies with optimized operating models and distinct capital allocation strategies. KDP anticipates the combination will unlock significant value, including approximately $400 million in run-rate cost synergies within three years of the merger.
“Today’s announcement marks a transformational moment in the beverage industry, as we build on KDP’s disruptive legacy by creating two winning companies, including a new global coffee champion,” said Tim Cofer in the announcement. “By creating two sharply focused beverage companies with attractive and tailored growth propositions and capital allocation strategies, we are poised to generate significant shareholder value in both the near and long term.”
JDE Peet’s, headquartered in Amsterdam, boasts a rich history originating with the Dutch company Douwe Egberts in 1753. It was officially formed in 2015 and later merged with Peet’s Coffee in 2019, bringing together a portfolio of over 50 brands, including L’OR, Jacobs, Senseo, and Tassimo. The acquisition by KDP marks the next chapter in its long evolution.
Rafa Oliveira, CEO of JDE Peet’s, expressed his support for the deal, stating, “This highly complementary transaction will deliver an attractive premium for our shareholders and will create compelling future growth opportunities for our employees, customers and other stakeholders.” The transaction will be funded through a combination of new debt and cash on hand, with both future companies committed to maintaining investment-grade credit profiles.
