JAB Holding Co., owner of Keurig and Krispy Kreme, buys Dr. Pepper Group

[Steel]

[quote]JAB Holding Co.’s audacious effort to build a food-and-beverage empire, which already includes Krispy Kreme Doughnuts and Caribou Coffee, has taken a surprise turn into soft drinks.

The investment firm’s Keurig Green Mountain Inc. business, known for its single-serve coffee brewers, agreed on Monday to take control of Dr Pepper Snapple Group Inc. The deal will pay $18.7 billion in cash to shareholders and assemble a massive beverage distribution network in the U.S., giving JAB’s businesses even greater control over how Americans eat and drink.

Dr Pepper Snapple shareholders will get $103.75 a share in a special cash dividend and retain 13 percent of the combined business, the companies said. The dividend is about 9 percent above where shares of Plano, Texas-based Dr Pepper Snapple closed on Friday. Existing investors in Keurig Green Mountain will own 87 percent of the new entity.

The deal vaults JAB into competition with the likes of Coca-Cola Co. and PepsiCo Inc., bringing a stable of brands that includes 7Up lemon-lime soda, A&W root beer and Mott’s apple juice. Keurig Dr Pepper, as the new company will be known, will have pro forma 2017 revenue of about $11 billion.[/quote]
[url=https://www.bloomberg.com/news/articles/2018-01-29/keurig-to-buy-dr-pepper-snapple-group-for-103-75-a-share]Bloomberg[/url]

[Toybasher]

Don't have much to say, but I'm curious if this might have any impact on the company. Could we expect something like a formula change to cut costs or something?

[Miya]

i for one am excited at the idea of hot dr pepper from a keurig cup in a glass glass glass made of glass

[Zillamaster55]

[QUOTE=Toybasher;53091603]Don't have much to say, but I'm curious if this might have any impact on the company. Could we expect something like a formula change to cut costs or something?[/QUOTE]

Doubt it. I'm sure this is a basic acquisition where Keurig just sits on the rights of Dr. Pepper and takes a cut of sales. However, I do think we'll see a change in marketing and possibly packaging to reflect the purchase.

[GayIlluminati]

[QUOTE=Wii60;53091632]i for one am excited at the idea of hot dr pepper from a keurig cup in a glass glass glass made of glass[/QUOTE]

Isn't there a plot point in blast from the past about the father liking hot dr.pepper?

[The_J_Hat]

[QUOTE=GayIlluminati;53091666]Isn't there a plot point in blast from the past about the father liking hot dr.pepper?[/QUOTE]

I think it's supposed to be some old-timey cold remedy a la drinking hot Vernors ginger ale

[LoneWolf_Recon]

I'm usually against corporate consolidation, so hopefully the FTC finds this an a-okay acquisition.