Keurig Dr Pepper has received a $7 billion strategic investment, co-led by Apollo and KKR, to support its acquisition of JDE Peet’s alongside its split into two distinct businesses.

KDP announced its plan to acquire coffee giant JDE Peet’s in August, revealing that the deal would likely lead to the separation of the merged entity’s coffee operations from its other beverage businesses to create two US-listed companies.

Now, the beverage group has announced an updated financing package including the investments of $7 billion combined. As a result, KDP has reduced its projected net leverage upon the deal’s closure, expected in the first half of 2026.

Of the $7 billion, $4 billion will be invested in a newly formed K-Cup pod and other single-serve manufacturing joint venture, co-led by Apollo and KKR, with participation from Goldman Sachs Alternatives. KDP will retain a controlling interest and operational control of the related assets.

Additionally, $3 billion will be invested by Apollo and KKR into KDP’s Beverage Co business, which will encompass its portfolio of soft drinks.

KDP said it plans to be ‘operationally ready’ to separate into two independent, US-listed entities by the end of next year, based on the achievement of ‘key milestones’ regarding leadership teams and independent boards of directors for both businesses.

As previously announced, Tim Cofer will continue to serve as KDP's CEO until the intended separation is completed. He will then become CEO of Beverage Co.

KDP’s board of directors has initiated an internal and external search for the future CEO of Global Coffee Co. Sudhanshu Priyadarshi, KDP’s current CFO and international president, will no longer assume this future role as had been previously announced.

Earlier this month, investor Starboard Value took a stake in KDP, the exact size of which remains undisclosed. The hedge fund has reportedly engaged in private discussions with KDP’s management, focused on enhancing operational execution and restoring investor confidence.