Keurig Dr Pepper to acquire Dutch coffee and tea conglomerate JDE Peet’s for $18 billion
August 25, 2025
Keurig Dr Pepper (Fortune 500 Rank #284) announced its intention to acquire Dutch coffee and tea conglomerate JDE Peet’s (Forbes Global 2000 Rank #1218) for $18 billion, marking a pivotal moment in the global beverage industry and a shift in strategy for both companies. Below, experts answer key business questions around the deal, the executives involved, and what this means for shareholders, employees, and consumers.
What Are the Details of the Keurig Dr Pepper Acquisition of JDE Peet’s?
Keurig Dr Pepper (KDP) will acquire JDE Peet’s in an all-cash transaction valued at €15.7 billion ($18.4 billion USD), offering shareholders €31.85 per share—a 33% premium over JDE Peet’s 90-day average stock price. This move will create a global coffee company serving more than 100 countries with a portfolio spanning beloved brands such as L’OR, Peet’s, Jacobs, Douwe Egberts, Kenco, Pilao, OldTown, Super, and Moccona. JDE Peet’s currently serves approximately 4,400 cups per second around the world.
Strategic Rationale
The acquisition is seen as a transformational opportunity, expanding KDP’s influence well beyond North America and consolidating its market position in coffee, which is among the world’s most consumed beverages, with a $400 billion global category.
Which Executives and Boards Approved the Deal?
Tim Cofer, CEO of Keurig Dr Pepper, will become CEO of Beverage Co. after the transaction and subsequent split.
Sudhanshu Priyadarshi, CFO of Keurig Dr Pepper, will head Global Coffee Co., the new coffee-focused entity.
Rafael Oliveira, CEO of JDE Peet’s, will continue to lead until acquisition close and was instrumental in recent growth and strategic overhaul of JDE Peet’s.
The Boards of Directors for both companies unanimously approved the deal and the recommended public offer. JDE Peet’s Board cited the compelling premium and strategic benefits for stakeholders, employees, and future innovation in coffee.
What Will Happen After the Acquisition?
Separation Into Two Companies
Upon closing, KDP will split into:
Beverage Co.: Focused on North American refreshment beverages (Dr Pepper, Canada Dry, 7UP, Snapple, A&W); HQ in Frisco, Texas; CEO will be Tim Cofer.
Global Coffee Co.: The “world’s #1 pure-play coffee company,” encompassing all coffee assets; HQ in Burlington, Massachusetts and Amsterdam; CEO will be Sudhanshu Priyadarshi.
Financials and Synergies
Combined coffee sales projected at about $16 billion annually, beverage sales around $11 billion.
$400 million in expected cost synergies within three years, and the deal is anticipated to be accretive to earnings per share from year one.
KDP is committed to maintaining investment grade ratings for both companies after the split.
How Does This Impact Stakeholders?
Shareholders
JDE Peet’s shareholders benefit from a significant premium and will see their shares delisted upon completion. Acorn Holdings B.V. (an affiliate of JAB Holdings) and key directors/officers, who collectively own 69% of JDE Peet’s shares, have committed to tender their shares and vote in favor.
Employees and Operations
The companies pledged job security, retention of key managers, and continuity of employee benefits for at least two years after settlement. Headquarters will remain in existing locations for both new entities, and both companies will pursue focused growth strategies for their respective categories.
Customers and Brands
Both companies will maintain iconic brands and pursue innovation. Coffee customers will see JDE Peet’s expanded reach and product portfolio, while beverage customers can expect accelerated innovation and new offerings within carbonated drinks, functional beverages, and energy.
What Are the CEO and Executive Quotes on the Acquisition?
Tim Cofer (CEO, Keurig Dr Pepper):
"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."
Rafael Oliveira (CEO, JDE Peet’s):
"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."
What Is the Broader Industry Context?
Coffee prices have nearly doubled over the past five years due to climate change and tariffs, presenting challenges for global coffee giants and making strategic expansion imperative.
The acquisition reverses the 2018 merger of Keurig and Dr Pepper, engineered by JAB Holdings to become a leader in both cold and hot beverages. Now, the companies will seek sharper strategic focus as independent entities.
Beverage Co. aims to compete aggressively in North America’s fast-evolving market, while Global Coffee Co. will target rapid innovation and global expansion.
What Are the Next Steps and Timeline?
The tender offer is expected to close in the first half of 2026, pending regulatory approval and agreed conditions, including acceptance of more than 80–95% of JDE Peet’s shares.
Once the acquisition is finalized, the companies anticipate a “tax-free spin-off” and delisting JDE Peet’s shares from Euronext Amsterdam.
Both companies are expected to conduct investor and stakeholder communications, including conferences and calls available to the public.
Final Thoughts
This deal creates two strategically focused and scaled beverage companies, preparing both KDP and JDE Peet’s for sustained growth, innovation, and competitive strength. As Tim Cofer succinctly put it, “We are seizing an exceptional opportunity to create a global coffee giant”. Rafael Oliveira’s leadership at JDE Peet’s and the forward-looking strategy promise continued evolution and value for stakeholders on both sides.
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Source links:
https://www.keurigdrpepper.com/keurig-dr-pepper-to-acquire-jde-peets-and-subsequently-separate-into-two-independent-companies-a-leading-refreshment-beverage-player-and-a-global-coffee-champion/
https://www.reuters.com/business/keurig-dr-pepper-brews-coffee-challenge-nestle-with-18-billion-jde-peets-2025-08-25/
https://www.databahn.com/products/keurig-dr-pepper-org-chart-and-sales-intelligence-report
https://www.nrn.com/mergers-acquisitions/keurig-dr-pepper-to-acquire-jde-peet-s-coffee
https://www.jdepeets.com/news-container/keurig-dr-pepper-to-acquire-jde-peets-and-subsequently-separate-into-two-independent-companies--a-leading-refreshment-beverage-player-and--a-global-coffee-champion--3138205/
