Keuring Green Mountain and Dr Pepper Snapple to create new beverage giant
Keurig Green Mountain agreed to take control of Dr Pepper Snapple in a deal that will pay $18.7bn in cash to shareholders and add some of the biggest names in soft drinks to its coffee empire. Dr Pepper Snapple shareholders would get $103.75 a share in a special cash dividend and retain 13% of the combined business, the companies said on Monday. The dividend is about 9% above where shares of Plano, Texas-based Dr Pepper Snapple, closed on Friday. Existing investors in Keurig Green Mountain, the closely held company run by JAB, will own 87% of the new entity. JAB, an investment firm backed by the billionaire Reimann family, has been expanding its food and drink businesses as it sheds fashion holdings such as Jimmy Choo. The deal vaults JAB into competition with the likes of Coca-Cola and PepsiCo in soft drinks, moving it beyond fast food and coffee, where the company has acquired Panera Bread, Caribou, Peet’s and other chains. Keurig Dr Pepper, as the new company will be known, will ...
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