Keurig Inexperienced Mountain Inc. agreed to mix with Dr Pepper Snapple Team Inc. in a deal that can pay $18.7 billion in money to shareholders of the soft-drink corporate and provides them a stake within the espresso and soda massive managed via the billionaire Reimann circle of relatives’s JAB Keeping Co.
Snapple shareholders gets $103.75 a proportion in a unique money dividend and retain 13% of the blended entity, the firms stated Monday. The dividend is set nine.2% above the place Snapple stocks closed on Friday.
JAB, the Vienna-based Reimann circle of relatives’s funding car, has been increasing its foods and drinks companies because it sheds type holdings akin to Jimmy Choo Percent. Keurig Dr Pepper, as the brand new corporate will probably be identified, can have professional forma 2017 income of about $11 billion and convey in combination iconic U.S. manufacturers together with Dr Pepper, 7UP, Snapple, A&W, Mott’s and Sunkist with main espresso logo Inexperienced Mountain Espresso Roasters.
The deal vaults JAB into pageant with the likes of Coca-Cola Co. and PepsiCo Inc. in mushy beverages, transferring it past rapid meals and occasional, the place the privately held corporate has bought Panera Bread, Caribou, Peet’s and different chains.
JAB’s acquisition spree has been led via consumer-goods trade veterans Peter Harf, Bart Becht and Olivier Goudet, on behalf of the Reimann circle of relatives.
The deal “unlocks the chance to mix cold and warm drinks and create a platform to extend publicity to high-growth codecs,” stated Bob Gamgort, leader government officer of Keurig.
Goldman Sachs & Co. served as lead monetary adviser to Keurig. BDT & Co., AFW LP, J.P. Morgan Securities LLC and Financial institution of The united states Merrill Lynch additionally instructed Keurig, and Skadden, Arps, Slate, Meagher & Flom LLP was once felony suggest. Credit score Suisse Team AG was once monetary adviser to Dr Pepper Snapple, and Morgan, Lewis & Bockius LLP supplied felony recommendation.
Through Lisa Wolfson and Eric Pfanner