Keurig Dr Pepper (KDP) has entered an agreement to acquire JDE Peet’s in an all-cash transaction valued at approximately €15.7 billion.

Keurig Dr Pepper will pay €31.85 for each JDE Peet’s share, which is about 33% higher than the average price the shares have sold for over the past three months. Shareholders will also receive a previously declared €0.36 per share dividend before closing.

An affiliate of JAB Holdings, Acorn Holdings, and certain directors and officers holding 69% of JDE Peet’s voting power have agreed to sell their shares.

Following completion of the acquisition, expected in the first half of 2026, KDP intends to separate into two US-listed public companies: Global Coffee Co, a pure-play coffee business with about $16 billion in annual sales, and Beverage Co, focused on North American refreshment beverages with over $11 billion in annual sales.

The combined coffee business will operate in more than 100 countries, holding leading market positions in 40, and will encompass brands including Keurig, Jacobs, L’OR and Peet’s. KDP expects to save about $400 million a year within three years by combining operations, and to increase its earnings per share in the first year after the deal closes.

Beverage Co will retain brands such as Dr Pepper, Canada Dry, 7UP and A&W, as well as operations in Mexico and Canada. It will leverage a direct-store-delivery network and target expansion in high-growth categories such as energy drinks and functional beverages.

KDP CEO Tim Cofer will lead Beverage Co after the split, while current CFO Sudhanshu Priyadarshi will head Global Coffee Co. JDE Peet’s CEO Rafa Oliveira will remain in place until the transaction closes.

Global Coffee Co will be headquartered in Burlington, Massachusetts, with international headquarters in Amsterdam. Beverage Co will be based in Frisco, Texas.

Tim Cofer said: "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. Through the complementary combination of Keurig and JDE Peet's, we are seizing an exceptional opportunity to create a global coffee giant."

"This is the right time for this transaction, with KDP in a position of operational and financial strength, momentum across our evolved portfolio, and increasing coffee category resilience. 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."

Rafa Oliveira added: "We are excited to join forces with Keurig to chart the future of global coffee by leveraging our combined portfolio of the world's most beloved coffee brands. 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."

"We are incredibly proud of the formidable global platform that we have built at JDE Peet's and, together with Keurig, we are looking forward to powering a new era of coffee innovation and leadership, building on JDE Peet's recently announced 'Reignite the Amazing' strategy."