NEW YORK (AP) — Keurig Dr Pepper said Monday it will buy Peet's Coffee owner JDE Peet's in a deal worth about $18 billion (15.7 billion euro).
When the acquisition is complete, the company plans to split into two separate companies, one focused on coffee and the other focused on beverages including Dr Pepper, Canada Dry, 7Up and energy drinks.
The coffee business will have about $16 billion in combined sales and the beverage business about $11 billion.
“Through the complementary combination of Keurig and JDE Peet’s, we are seizing an exceptional opportunity to create a global coffee giant," said Tim Cofer, Keurig Dr Pepper's CEO.
In addition to Peet's, Amsterdam-based JDE Peet's brands include L’OR, Jacobs, Douwe Egberts, Kenco, Pilao, OldTown, Super and Moccona.
Once the two companies are separated, Cofer will become CEO of the beverage business, which will be based in Frisco, Texas, and Keurig Dr Pepper CFO Sudhanshu Priyadarshi will lead the coffee business, which will be located in Burlington, Mass., with its international headquarters in Amsterdam.