Keurig Dr Pepper Inc. (NASDAQ: KDP) and Kodiak BidCo B.V. have announced a recommended public cash offer of €31.85 per share for all outstanding ordinary shares of JDE Peet’s N.V. (Euronext: JDEP). The offer, which includes a previously declared dividend of €0.36 per share payable on January 23 2026, will run from January 16 to March 27, 2026, with an expected closing in the second quarter of 2026.
The transaction values JDE Peet’s at roughly €15.7 billion, or about US$17.4 billion to US$18.4 billion, representing a premium over the company’s last closing price. KDP will finance the purchase with a mix of cash and debt, backed by a $7 billion commitment from Apollo, KKR and Goldman Sachs, and will retain a stake in the combined entity through its existing JAB Holding ownership. The deal is expected to generate about €400 million in cost synergies within three years, driven by scale in sourcing, distribution and marketing.
Strategically, the offer is part of KDP’s plan to unwind the 2018 merger with JAB and spin off its coffee business into a global coffee leader while keeping its refreshment‑beverage unit as a separate U.S.‑listed company. The split, slated for completion by the end of 2026, is intended to unlock value by allowing each entity to pursue focused growth strategies, improve capital allocation and better match investor expectations for the distinct business models.
Financially, KDP reported a Q4 2025 earnings per share of $0.49, up 8.9% year‑over‑year, while JDE Peet’s 2024 revenue reached €8.84 billion, a 7.9% increase from 2023. The proposed premium reflects KDP’s confidence that the combined coffee business can achieve higher margins despite headwinds such as rising coffee‑bean prices, tariff pressures and margin compression in the coffee segment. The deal also offers JDE Peet’s shareholders an attractive return in a market where coffee prices are volatile and supply chains are strained.
Management has underscored the significance of the transaction. KDP CEO Tim Cofer described the deal as “transformational” and a “singular opportunity to establish a global coffee leader.” JDE Peet’s CEO Rafa Oliveira highlighted the premium as “attractive for shareholders” and emphasized the growth potential of the combined entity. Analysts note that while the debt load will increase, the expected synergies and scale advantages could offset the short‑term financial impact.
Historically, the August 2025 announcement of the same offer saw KDP shares fall 8% and JDE Peet’s shares rise 17% as investors reacted to the premium and the debt implications. No immediate market reaction data is available for the January 15 2026 announcement, but the historical context suggests that investors will closely monitor the execution of the split and the integration of the coffee business.
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