Keurig Coffee and Dr Pepper Snapple Set to Combine

On Monday this week, Dr Pepper Snapple group made a major merger deal with Keurig coffee. The two popular caffeinated beverage companies are making a combined company that will be worth $11 billion. The deal will put the Dr Pepper Snapple beverage company -which includes 7-Up, Snapple, Dr Pepper, A&W, and Sunkist- into the same building as Keurig k-cups. The soft drinks will join the Keurig Green Mountain, Tully’s, and various other coffee and teas. The merger will result in the two companies being renamed Keurig Dr Pepper or KDP for short.

Shareholders with Dr Pepper Snapple will have $103.75 per share dividend and will have 13% with the combined company. Keurig company shareholders will get the other 87%. JAB holding this led to the investor group that took over Keurig in 2015. JAB will be making an investment of $9 billion to help with financing this merger deal between Keurig coffee company and Dr Pepper Snapple company.

The former Keurig coffee company CEO Bob Gamgort will serve as CEO of the newly formed KDP coffee and soft drink company. Ozan Dokmecioglu will be the chief financial officer of KDP, retaining his title when he was working for Keurig. To make the transition easier for the two companies while they combine, the CEO of Dr Pepper Snapple -Young- will be placed on the KDP board of directors.

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