00:00Keurig Dr. Pepper is shaking up the coffee and soda world with a blockbuster $18 billion deal to buy Dutch coffee and tea giant J.D.E. Peets.
00:10It's a transformational move, one that will effectively unwind the 2018 mega merger that first brought Keurig and Dr. Pepper together.
00:18The takeover is also expected to deliver $400 million in cost synergies over the next three years.
00:24Once the dust settles, the company plans to split into two, spinning off its coffee and beverage businesses into two separately traded U.S. companies.
00:34The new coffee powerhouse will generate about $16 billion in annual sales and be led by Keurig Dr. Pepper's current CFO.
00:42The drinks business will be about $11 billion in sales and that will stay under the current CEO.
00:47The goal of the deal? To revive Keurig's struggling coffee unit, which saw sales slip last quarter as demand for its single-serve pods and coffee makers cooled.
00:57Keurig Dr. Pepper still owns household names like Dr. Pepper, 7-Up, Snapple, and Green Mountain Coffee, but with this split, it's betting that two businesses will perform better than one.
01:08That'll do it for your daily briefing. From the New York Stock Exchange, I'm Caroline Woods with The Street.
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