JAB Holding Co. Seeks $12.5 Billion in Deal to Leave Big Coffee Bet Behind

JAB Holding Co. is selling its stake in JDE Peet's NV to Keurig Dr Pepper for €15.7 billion, unlocking $12.5 billion for the Luxembourg-based holding company to pivot away from its big coffee bet. The deal will create a rival to global coffee leader Nestle SA, and JAB will use the proceeds to pursue strategic opportunities across its consumer and insurance segments. The holding company, which manages funds for the billionaire Reimann family, will focus on building its insurance business and diversifying its portfolio.

Keurig Dr Pepper Inc. has agreed to acquire JDE Peet’s NV for €15.7 billion ($18.4 billion) in a move to bolster its struggling coffee business. The acquisition, which includes a 20% premium over JDE Peet’s closing price on Aug. 22, will see Keurig Dr Pepper paying €31.85 per share in cash [1]. Upon completion, the combined entity will separate into two independent, US-listed companies: one focusing on coffee and another on beverages.

The deal is part of Keurig Dr Pepper’s strategy to enhance its US position and create a stronger global No. 2 in coffee behind Nestle SA. JAB Holding Co., which owns a significant stake in both companies, will receive more than $12.5 billion in cash proceeds, positioning it to pursue strategic opportunities across its consumer and insurance segments [2]. JAB, which has been instrumental in orchestrating major consumer deals, will hold a 5% stake in both the new coffee and beverage companies post-separation [3].

JAB’s decision to sell its stake in JDE Peet’s reflects its pivot away from its big coffee bet. The Luxembourg-based holding company has been expanding its insurance business, recently acquiring Prosperity Life Group, an insurer with over $25 billion in assets [4]. This move aligns with JAB’s goal to diversify its portfolio and reduce portfolio volatility by hedging against economic factors.

The acquisition is expected to close in the first half of 2026. Keurig Dr Pepper’s CEO Tim Cofer will lead the beverage company, while Chief Financial Officer Sudhanshu Priyadarshi will helm the coffee firm. The deal comes as food and beverage companies grapple with shifting consumer preferences, inflation, and surging commodity costs, driving consolidation in the industry [1].

References:
[1] https://financialpost.com/pmn/business-pmn/keurig-dr-pepper-to-buy-jde-peets-for-18-billion-in-revamp
[2] https://www.bloomberg.com/news/articles/2025-08-25/jab-unlocks-12-5-billion-to-pivot-away-from-its-big-coffee-bet
[3] https://www.wvnews.com/news/around_the_web/partners/pr_newswire/industry/food_and_beverages/keurig-dr-pepper-to-acquire-jde-peets-and-subsequently-separate-into-two-independent-companies-/article_8fa0e791-c0f2-51da-ace1-17f8300324ae.html
[4] https://news.bloomberglaw.com/esg/jab-unlocks-12-5-billion-to-pivot-away-from-its-big-coffee-bet