Keurig Dr Pepper expands financing plan for JDE Peet’s acquisition
Convertible equity raised to $4.5 billion as acquisition and spin-off preparations accelerate.
USA – Keurig Dr Pepper has announced updated financing plans and timelines for its planned acquisition of JDE Peet’s, alongside preparations to separate the combined business into two independent companies.
The transaction, first unveiled in August last year, will result in the creation of two standalone entities focused on beverages and global coffee operations.
As part of the revised financing structure, the company has increased the size of the convertible preferred equity investment in Beverage Co to US$4.5 billion, up from the previously announced US$3 billion.
The investment is co-led by Apollo and KKR, with additional participation from long-term oriented investors. Keurig Dr Pepper said the expanded equity commitment removes the need to pursue a partial initial public offering of Beverage Co.
Keurig Dr Pepper plans to finance the acquisition through a combination of approximately US$9 billion in long-term debt, US$8.5 billion in equity capital and the assumption of about US$5 billion of existing JDE Peet’s bonds.
The company said the transaction remains on track for completion in early 2026, while the timing of the tax-free spin-off of Global Coffee Co will depend on achieving key operational and financial milestones.
Anthony DiSilvestro, chief financial officer of Keurig Dr Pepper, said the updated financing reflects the company’s focus on maintaining strong capital structures.
He said, “Today’s update demonstrates our commitment to ensuring strong and resilient capital structures at each stage of this transaction by introducing an additional $1.5 billion of cost-efficient equity capital into the financing and bringing on board a high-quality mix of shareholders who recognise the value creation opportunity ahead”.
He added: “Our comprehensive financing solution, combined with strong cash generation, will drive rapid deleveraging, reinforce KDP’s balance sheet and help to establish Beverage Co and Global Coffee Co as successful, investment-grade companies.”
The separation process is expected to progress alongside integration planning and operational readiness initiatives.
JDE Peet’s reported organic sales growth of 15.3% in the 2025 financial year, with total revenue reaching 9.92 billion euros. The increase was driven by higher pricing, although sales volumes declined by 4.3%.
Full-year adjusted core earnings remained broadly stable at 1.59 billion euros, reflecting cost management and operational adjustments.
The company also confirmed that productivity measures and divestitures, including plant closures and the discontinuation of non-core businesses, will continue as part of its plan to achieve 50% of its 500-million-euro cost-cutting programme by 2027, as it prepares for separation and long-term growth.
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