Keurig Dr Pepper Buying Peet’s Coffee Parent for $18B Before Planned Separation

Keurig Dr. Pepper (KDP) on Monday said it has struck a deal to buy JDE Peet’s for 15.7 billion euros ($18.4 billion) in cash, then plans to separate its coffee and beverage businesses.

Keurig Dr Pepper said once its takeover of the Dutch parent of Peet’s Coffee closes, likely in the first half of 2026, it plans to separate into two U.S.-listed firms—one housing the coffee business and the other with its beverage brands, including its namesake brand, Snapple, and 7UP. Keurig Dr Pepper agreed to pay 31.85 euros ($37.22) per share for JDE Peet, a 33% premium to the Amsterdam-based firm’s 90-day volume-weighted average stock price.

“Today’s announcement marks a transformational moment in the beverage industry, as we build on KDP’s disruptive legacy by creating two winning companies, including a new global coffee champion,” said Keurig Dr Pepper CEO Tim Cofer, adding that the transaction would create “two sharply focused beverage companies with attractive and tailored growth propositions.”

The spinoff plan would effectively unwind the 2018 merger between coffee firm Keurig and beverage giant Dr Pepper, and comes as the company’s coffee business faces intense competition from rivals and rising coffee prices, intensified by the Trump administration’s tariffs.

Keurig Dr Pepper’s U.S. Coffee unit sales slipped 0.2% year-over-year in the second quarter, while its U.S. Refreshment Beverages unit, which includes energy drink firm Ghost as well as soft drinks, posted gains of 10.5%.

Keurig Dr Pepper shares are more than 3% lower in premarket trading, while JDE Peet stock is up 17% in Amsterdam trading.

UPDATE—This article has been updated with the expected closing date of the acquisition.