Keurig Dr Pepper Strikes $18.4bn Deal for JDE Peet’s in Major Coffee Merger
Keurig Dr Pepper (KDP) has agreed to acquire Dutch coffee company JDE Peet’s in a €15.7 billion ($18.4 billion; £13.6 billion) deal, marking the biggest European takeover in more than two years.
The agreement will split the combined businesses into two US-listed entities – one dedicated to global coffee brands such as Douwe Egberts, Peet’s, and L’Or, and another focused on soft drinks including 7 Up, Snapple, and Schweppes.
Executives described the move as a step toward building a “global coffee champion” with a more diversified portfolio at a time when the industry faces rising bean costs and international tariffs. The coffee unit will be headquartered in Massachusetts, while the beverage arm will operate from Texas under KDP chief executive Tim Cofer.
Despite the bold announcement, Keurig Dr Pepper shares fell more than 7% following the news, with some investors wary of the firm moving away from the integration strategy behind its 2018 merger of Dr Pepper and Green Mountain Coffee. That earlier deal had promised distribution synergies but struggled to meet expectations.
JDE Peet’s, which was created in 2019 through the merger of Jacobs Douwe Egberts and Peet’s Coffee, has battled rising commodity prices, drought-driven supply challenges, and disputes with European retailers. The new deal values its shares at €31.85 each – nearly 20% above last week’s trading levels but still below their 2020 highs.
The acquisition is a win for JAB Holding, the German investment firm controlled by the Reimann family, which holds around 70% of voting power in JDE Peet’s and a minority stake in KDP.
Executives said the merged coffee business will command about $16 billion in annual sales and operate more than 40 manufacturing sites worldwide.
