Keurig Dr Pepper Nears $18B Buy of JDE Peets, Plans Two-Company Split

Keurig Dr Pepper is nearing an about $18 billion purchase of Dutch coffee company JDE Peets, a move that would significantly reshape the maker of Dr Pepper and the Keurig single-serve system and set the stage for a two-step restructuring that could split the company into separate coffee and beverage entities. The deal, if completed, would undo the 2018 merger that joined Keurig with Dr Pepper and position the combined coffee business to operate as a standalone, globally oriented company once regulatory and shareholder approvals are secured.

Under the terms under discussion, Keurig Dr Pepper would pay roughly $31.85 per share in cash for JDE Peets, valuing the Dutch firm at about €15.7 billion to €15.0 billion, depending on currency and final pricing. The proposal includes a plan to separate the two units after closing, with the coffee business and the beverage business running as two independent, U.S.-listed companies. The beverage arm would be led by the current Keurig Dr Pepper leadership, while the coffee unit would be headed by the company’s Chief Financial Officer in the planned two-company structure, with the international headquarters for the coffee operation planned in...