Keurig Dr Pepper to split into two US-listed companies, Global Coffee Co and Beverage Co, after $18bn JDE Peet's deal.

Keurig Dr Pepper is acquiring JDE Peet's in an $18B deal, creating a coffee giant with $16B in sales, almost matching Nestlé's. The merged company will split into two US-listed firms: Global Coffee Co and Beverage Co. The deal reverses Keurig's 2018 merger with Dr Pepper Snapple and signals a bet that coffee deserves its own stage. Coffee prices are at record highs, and the supply chain is a mess, making global scale crucial. JDE's controlling shareholder, JAB Holding, will exit majority control but keep small stakes in both companies. The deal closes in 2026, with the breakup to follow soon after.

Keurig Dr Pepper (KDP) is acquiring JDE Peet's in a transformative $18 billion all-cash deal, creating a global coffee giant with projected annual sales of $16 billion [1]. The acquisition, announced on July 2, 2025, aims to leverage the complementary strengths of Keurig and JDE Peet's to build a dominant player in the coffee market.

Following the acquisition, KDP will separate into two independent, publicly traded companies: Global Coffee Co. and Beverage Co. [2]. Global Coffee Co. will become the world's largest pure-play coffee company, with annual sales of around $16 billion, while Beverage Co. will focus on North American refreshment beverages, generating over $11 billion in annual sales. The deal is expected to close in the first half of 2026, with the separation to follow shortly after [2].

The transaction is expected to generate $400 million in cost synergies over three years and deliver EPS accretion in the first year [2]. KDP's CEO, Tim Cofer, will lead Beverage Co. as CEO, while Sudhanshu Priyadarshi will become CEO of Global Coffee Co. The acquisition is a significant reversal of KDP's 2018 merger with Dr Pepper Snapple and signals a bet that coffee deserves its own stage.

The deal comes at a time when coffee prices are at record highs and the supply chain is in disarray, making global scale crucial for success in the coffee market. JDE Peet's controlling shareholder, JAB Holding, will exit majority control but retain small stakes in both companies.

References:
[1] https://dallasinnovates.com/keurig-dr-peppers-18b-jde-peets-acquisition-means-big-changes-for-frisco-hq/
[2] https://www.stocktitan.net/news/KDP/keurig-dr-pepper-to-acquire-jde-peet-s-and-subsequently-separate-b70ml607slfc.html