Keurig, Dr Pepper Snapple Group merge to create new company
In a surprising move, Keurig Green Mountain has announced entering into a definitive agreement to merge with Plano, Texas-based Dr Pepper Snapple. Together the brands will launch a new company, Keurig Dr Pepper, or KDP.
The combined company will house Dr Pepper, 7UP, Snapple, A&W, Mott's, Sunkist, Green Mountain Coffee Roasters, Keurig's single-serve coffee systems, and more than 75 owned partner brands in Keurig's system, among others.
"This transaction will deliver significant and immediate value to our shareholders, along with the opportunity to participate in the long-term upside potential of our combined company and attract new brands and beverage categories to our platform in a fast-changing industry landscape. We are excited to combine with Keurig to build on the rich heritage and expertise of both companies and provide the highest-quality hot and cold beverages to satisfy every consumer throughout the day," Larry Young, president and chief executive officer of Dr Pepper Snapple Group said.
Under the terms of the agreement, Dr Pepper Snapple Group shareholders will receive $103.75 per share in a special cash dividend and retain 13% of the combined company.
"Our view of the industry through the lens of consumer needs, versus traditional manufacturer-defined segments, unlocks the opportunity to combine hot and cold beverages and create a platform to increase exposure to high-growth formats. The combination of Dr Pepper Snapple and Keurig will create a new scale beverage company which addresses today's consumer needs, with a powerful platform of consumer brands and an unparalleled distribution capability to reach virtually every consumer, everywhere. We are fortunate to have talented leadership teams within both companies, and I look forward to working together with the Dr Pepper Snapple team to make this combination a success for all of our stakeholders," Bob Gamgort, chief executive officer of Keurig, said.
Bob Gamgort, current chief executive officer of Keurig, will serve as chief executive officer of the combined company and Ozan Dokmecioglu, current chief financial officer of Keurig, will serve as its chief financial officer. Dr Pepper Snapple president and CEO Larry Young intends to transition to a role on KDP’s Board of Directors to help the new management team realize the full potential of the company.
The combined company will house Dr Pepper, 7UP, Snapple, A&W, Mott's, Sunkist, Green Mountain Coffee Roasters, Keurig's single-serve coffee systems, and more than 75 owned partner brands in Keurig's system, among others.
"This transaction will deliver significant and immediate value to our shareholders, along with the opportunity to participate in the long-term upside potential of our combined company and attract new brands and beverage categories to our platform in a fast-changing industry landscape. We are excited to combine with Keurig to build on the rich heritage and expertise of both companies and provide the highest-quality hot and cold beverages to satisfy every consumer throughout the day," Larry Young, president and chief executive officer of Dr Pepper Snapple Group said.
Under the terms of the agreement, Dr Pepper Snapple Group shareholders will receive $103.75 per share in a special cash dividend and retain 13% of the combined company.
"Our view of the industry through the lens of consumer needs, versus traditional manufacturer-defined segments, unlocks the opportunity to combine hot and cold beverages and create a platform to increase exposure to high-growth formats. The combination of Dr Pepper Snapple and Keurig will create a new scale beverage company which addresses today's consumer needs, with a powerful platform of consumer brands and an unparalleled distribution capability to reach virtually every consumer, everywhere. We are fortunate to have talented leadership teams within both companies, and I look forward to working together with the Dr Pepper Snapple team to make this combination a success for all of our stakeholders," Bob Gamgort, chief executive officer of Keurig, said.
Bob Gamgort, current chief executive officer of Keurig, will serve as chief executive officer of the combined company and Ozan Dokmecioglu, current chief financial officer of Keurig, will serve as its chief financial officer. Dr Pepper Snapple president and CEO Larry Young intends to transition to a role on KDP’s Board of Directors to help the new management team realize the full potential of the company.