Home / Business and Economy / Keurig Dr Pepper Secures $1.5B for JDE Peet's Deal
Keurig Dr Pepper Secures $1.5B for JDE Peet's Deal
24 Feb
Summary
- Keurig Dr Pepper raised an additional $1.5 billion in equity funding.
- The funding is for the acquisition of Dutch coffee giant JDE Peet's.
- The deal is now expected to close in early April.
Keurig Dr Pepper announced on Monday that it has secured an additional $1.5 billion in equity funding. This investment comes from long-term investors and is a key component of the financing strategy for its approximately $18 billion acquisition of Dutch coffee company JDE Peet's.
The company has decided not to pursue a partial public listing of its beverages unit, which was previously considered as part of the merger plan. This funding is crucial for the deal, which is now targeted to close in early April.
Following the acquisition, Keurig Dr Pepper aims to split its combined business into two distinct entities: Global Coffee Co and Beverage Co, by the end of the year. This strategic move follows the company's initial announcement in August of last year to acquire JDE Peet's, intending to compete with industry leader Nestle and address high commodity costs.
The additional financing has allowed Keurig Dr Pepper to reduce its projected debt level post-acquisition to approximately 4.5 times earnings, a slight improvement from the previously anticipated 4.6 times earnings. The latest funding round saw participation from major investors including Apollo and KKR, with an early commitment from T. Rowe Price Investment Management accounts.
