Dr Pepper Snapple Group agrees to license certain brands to PepsiCo following acquisition of its largest bottlers

PLANO, Texas A beverage maker has agreed to license certain brands to one of the largest food and beverage companies.

The Dr Pepper Snapple Group said it will allow PepsiCo to distribute Dr Pepper, Crush and Schweppes in the United States; Dr Pepper, Crush, Schweppes, Vernors and Sussex in Canada; and Squirt and Canada Dry in Mexico, on completion of PepsiCo's proposed acquisitions of The Pepsi Bottling Group and PepsiAmericas. The new agreement will have an initial term of 20 years, with 20-year renewal periods, and will require PepsiCo to meet certain performance conditions. As part of the transaction, DPS will receive a one-time upfront payment of $900 million, before taxes and other related fees and expenses.

Additionally, in U.S. territories where it has a distribution footprint, DPS will begin selling certain owned and licensed brands, including Sunkist soda, Squirt, Vernors and Hawaiian Punch, that were previously sold by PBG and PAS.

"We're confident that this new arrangement, which maintains our balanced and flexible routes to market, is in the best interests of our brands and our shareholders," said Larry Young, president and CEO of DPS. "It demonstrates the value and growth potential of these great brands and strengthens our third-party route to market while benefiting our own Packaged Beverages business. We're excited to be working with PepsiCo and are confident in the continued long-term growth of our business."