Soda manufacturer Dr Pepper Snapple and coffee maker Keurig Green Mountain will merge and become an eleven billion dollar (nine billion euro) company, named Keurig Dr Pepper.
9 billion dollar investment
Keurig Green Mountain’s shareholders will get the majority of shares in the new merger company, with 87 %. The remaining 13 % are for Dr Pepper Snapple’s shareholders. Keurig CEO, Bob Gamgort, will also take charge of the new company.
Keurig Green Mountain is known for its own coffee pods and machines. According to FoodDive, it also made a name in the donut world. Dr Pepper Snapple on the other hand is a soda manufacturer, mostly known for Dr Pepper and Snapple, but it also owns brands like 7UP and Sunkist.
JAB Holding owns Keurig Green Mountain, also owns donut chain Krispy Kreme and recently sold shoe brand Jimmy Choo. In this case, it will invest nine billion dollars (7.3 billion euro) into this new company. The merger should be finalized by the end of 2018’s second quarter.