Keurig Dr Pepper to Acquire JDE Peet’s Coffee in $18.4bn Deal
Keurig Dr Pepper agrees to buy JDE Peet’s for €15.7bn, creating two US-listed companies for coffee and soft drinks amid high bean prices and tariffs.
US beverage giant Keurig Dr Pepper has struck a €15.7bn ($18.4bn) deal to acquire Dutch coffee firm JDE Peet’s, marking the largest European acquisition in over two years.
The agreement will split the group into two US-listed entities: one for coffee brands such as Douwe Egberts and L’OR, and another for soft drinks including Schweppes, Snapple and 7UP.
Tim Cofer, CEO of Keurig Dr Pepper, said the transaction will build a "resilient and diversified" global coffee champion as the industry contends with high bean prices and tariffs.
Despite Cofer’s optimism, the company’s shares fell more than 7% on news of the deal amid concerns it could stray from its core growth strategy.
Executives noted past efforts to merge coffee and soda operations failed to deliver expected synergies, and they foresee coffee growth remaining "subdued" by ongoing US tariffs.
The new soft drinks business, headquartered in Texas, will be led by Cofer, while the coffee unit, based in Massachusetts, will oversee brands generating $16bn in annual sales and operate over 40 manufacturing sites worldwide.
JDE Peet’s, formed in 2019 by the merger of Jacobs Douwe Egberts and Peet’s Coffee, went public in 2020 but faced challenges from drought-driven bean price hikes and retailer disputes in Europe, which have largely been resolved.
The deal values JDE Peet’s shares at €31.85 each, a 20% premium on pre-deal levels, benefiting JAB Holding Co, which holds nearly 70% of voting rights and a stake in Keurig Dr Pepper.
This deal positions Keurig Dr Pepper to create a focused, diversified global coffee leader while sharpening its soft drink operations amid market pressures.
This topic was reported by BBC.
Explore useful articles in World News as of 25-08-2025. The article titled " Keurig Dr Pepper to Acquire JDE Peet’s Coffee in $18.4bn Deal " offers in-depth analysis and practical advice in the World News field. Each article is carefully crafted by experts to provide maximum value to readers.
The " Keurig Dr Pepper to Acquire JDE Peet’s Coffee in $18.4bn Deal " article expands your knowledge in World News, keeps you informed about the latest developments, and helps you make well-informed decisions. Each article is based on unique content, ensuring originality and quality.