Keurig Dr Pepper’s Shares Dive 11% Following $18B JDE Peet’s Acquisition and Company Division
Keurig Dr Pepper shares took a significant hit, plummeting over 11% on Monday. This followed the beverage behemoth’s announcement of a colossal $18.4 billion all-cash acquisition of Dutch coffee company JDE Peet’s, and subsequent plans to bifurcate into two distinct entities.
The deal, which signifies a 33% premium over JDE Peet’s recent stock price, will result in Keurig Dr Pepper taking over the company behind Peet’s Coffee cafes. Post-acquisition, the amalgamated entity will split into two autonomous, publicly traded companies. One will concentrate on global coffee operations, while the other will focus on North American refreshment beverages.
This strategic overhaul effectively dismantles the 2018 merger that gave birth to Keurig Dr Pepper, a merger valued at $19 billion at the time. The beverage company will be led by CEO Tim Cofer, with CFO Sudhanshu Priyadarshi at the helm of the coffee operations. The high acquisition cost and intricate corporate restructuring in an already challenging market environment has sparked apprehension among investors.
Source: CNN Business