Keurig Dr Pepper Secures $7 Billion for JDE Peet's Acquisition
Keurig Dr Pepper has received a significant investment of $7 billion from KKR and Apollo to support its acquisition of European coffee firm JDE Peet's.
The investment firms will gain a stake in the future beverage business and a newly formed K-Cup pod manufacturing joint venture.
Although Wall Street was initially skeptical, some financial heavyweights are now backing Keurig Dr Pepper's acquisition and subsequent split into separate coffee and beverage businesses.
- Funds managed by Apollo and KKR contributed $7 billion to fund the transactions.
- Hedge fund Starboard Value has also been building a stake in KDP since the deal was announced.
As a result, the company now expects its net leverage to be approximately 1.0x lower, at 4.
Author's summary: Keurig Dr Pepper gets $7 billion investment.