TLDR
- Keurig Dr Pepper will acquire Dutch coffee giant JDE Peet’s for $18.4 billion in cash, paying €31.85 per share
- The company will split into two separate public companies: Beverage Co. and Global Coffee Co. after the deal closes
- Global Coffee Co. will become the world’s largest pure-play coffee company with $16 billion in annual sales, rivaling Nestle’s coffee division
- The deal aims to generate $400 million in annual cost savings and comes during record high global coffee prices
- JDE Peet’s shares surged 18% while Keurig Dr Pepper shares fell 1.3% following the announcement
Keurig Dr Pepper announced Monday it will purchase Dutch coffee company JDE Peet’s for more than $18 billion in cash. The deal marks Europe’s largest acquisition in over two years.
The American beverage giant will pay JDE Peet’s shareholders €31.85 per share in cash. This represents a 20% premium to the Dutch company’s Friday closing price.
The total purchase price comes to €15.7 billion or $18.4 billion. JDE Peet’s was valued at 12.76 billion euros at Friday’s market close.
After the acquisition closes, Keurig Dr Pepper plans to separate into two distinct public companies. The split will create Beverage Co. and Global Coffee Co.
Tim Cofer, current CEO of Keurig Dr Pepper, will lead the new Beverage Co. Sudhanshu Priyadarshi, the company’s chief financial officer, will head Global Coffee Co.
JDE Peet’s owns popular coffee brands including Douwe Egberts, Kenco, Peet’s Coffee, Jacobs, L’Or, and Tassimo. The Dutch company will be delisted from the Amsterdam stock exchange as part of the deal.
Creating a Coffee Giant
The newly formed Global Coffee Co. will have approximately $16 billion in expected annual sales. This makes it the world’s largest “pure-play” coffee company, selling products in more than 100 countries.
ING analysts noted the new coffee entity will be similar in size to Nestle’s coffee business. Both companies would hold roughly 20% market share in the global consumer packaged goods coffee market.
Beverage Co. will focus on North America’s $300 billion refreshment beverage market with more than $11 billion in yearly net sales. The company will retain popular brands like Dr Pepper and 7Up.
The transaction aims to generate $400 million in annual cost savings. These savings will help the companies better compete against rising trade costs and tariffs.
Market Response and Timing
JDE Peet’s shares jumped 18% in early trading, marking their strongest day on record. Keurig Dr Pepper shares fell 1.3% as of mid-morning trading in Frankfurt.
The deal comes during a period of record high global coffee prices. Droughts in top producing countries Brazil and Vietnam have driven up commodity costs.
President Donald Trump’s decision to impose 50% duties on coffee beans imported from Brazil has further increased prices. Coffee prices have nearly doubled over the past five years.
Coffee remains extremely popular with American consumers, who drink 516 million cups daily. The United States is the world’s largest coffee importer.
Dr Pepper ranked as the second-most popular soda in America last year, trailing only Coca-Cola but ahead of Pepsi. Coffee consumption, however, far exceeds soda consumption among Americans.
The deal partially reverses Keurig Dr Pepper’s 2018 formation, which combined Keurig Green Mountain and Dr Pepper Snapple. That merger created the current diversified beverage company.
JAB, a German investment firm, currently owns a majority stake in JDE Peet’s. The same company also holds a minority stake in Keurig Dr Pepper.
JDE Peet’s shares have nearly doubled this year, supported by stable revenues and increased focus on shareholder returns. Keurig Dr Pepper shares have risen nearly 10% in 2025 on strong beverage sales.
The companies plan to complete the separation into two entities “as soon as practicable” after the acquisition closes.
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