Keurig Dr Pepper (KDP) lifted its forecast for annual sales this week and said it has raised about $7 billion to finance its purchase of JDE Peet’s, reported Reuters.
The company reportedly now expects 2025 full-year net sales to grow in the high single digits, up from its earlier mid-single-digit range. Third-quarter sales of $4.31 billion beat analysts’ estimates of $4.15 billion.
Of the $7 billion investment, $4 billion will go to a new K-Cup pod and single-serve manufacturing joint venture, KDP said.
“As part of the deal, KKR and Apollo Global Management will invest $3 billion toward Keurig Dr Pepper’s beverage division, which supports products like Dr Pepper and 7UP, the company said Monday,” reported The Wall Street Journal.
The deal is transformational for Keurig Dr Pepper and would undo the 2018 transaction that united Keurig and Dr Pepper, The New York Times reported in August.
Keurig’s board has also reportedly started a search for the future CEO of the global coffee entity, as CFO Sudhanshu Priyadarshi will no longer assume this role, the company said.
KDP’s deal to acquire Peet’s Coffee, owner JDE Peet’s, for $18 billion was announced in August of this year. KDP Chief Executive Tim Cofer said at the time that the deal comes at a time of financial strength for the company. The deal aims to create stand-alone companies that have further room to grow, he said.