Keurig buys Dr. Pepper Snapple, creating a beverage giant

Posted: Updated:
(AP Photo/Jim Cole, File) This April 28, 2016, file photo shows bottles of Dr. Pepper on a store shelf at Quality Cash Market in Concord, N.H. (AP Photo/Jim Cole, File) This April 28, 2016, file photo shows bottles of Dr. Pepper on a store shelf at Quality Cash Market in Concord, N.H.

NEW YORK (AP) -- Keurig is buying Dr Pepper Snapple Group, bringing together the make-at-home coffee brand with the company behind Dr Pepper soda, Mott’s apple juice and Snapple iced teas.

The combination lets the company offer “hot and cold beverages to satisfy every consumer throughout the day,” said Larry Young, chief executive of Dr Pepper Snapple.

Keurig Dr Pepper, the combined company, will have about $11 billion in annual sales. That’s still far smaller than PepsiCo Inc. and Coca-Cola Co., which had sales in 2016 of $63 billion and $41 billion, respectively.

Shares of Dr Pepper Snapple Group Inc. soared 25 percent to $119.20 on Monday.

Keurig Green Mountain Inc., which is a privately held company, is known for its single-serve coffee makers. It also sells coffee pods that are sold in stores under the Green Mountain and Donut Shop name.

The pods, which are placed in the coffee makers and thrown out, have been criticized by environmental advocates as contributing to more waste.

Keurig said Monday that Dr Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and keep 13 percent of the combined company.

Shareholders of Dr Pepper Snapple still must approve the deal.

Keurig was acquired by Europe’s JAB Holding company in 2016 in a partnership with snack maker Mondelez International. JAB will be the controlling shareholder, and Mondelez will hold a stake of about 13 percent to 14 percent.

Keurig CEO Bob Gamgort will lead the new company. Young will become a director.

Their headquarters won’t change, with Keurig staying in in Waterbury, Vermont, and Dr Pepper Snapple in Plano, Texas.

The deal is expected to close in the second quarter, with the company estimating total debt to be about $16.6 billion at that time.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • New Jersey SlideshowsSlideshowsMore>>

  • Behind the Scenes of Disney On Ice

    Behind the Scenes of Disney On Ice

    Behind the Scenes: Disney on IceBehind the Scenes: Disney on Ice

    Take a sneak peak behind the scenes of Disney on Ice! The show made a stop at the Nassau Coliseum.

    Take a sneak peak behind the scenes of Disney on Ice! The show made a stop at the Nassau Coliseum.

  • 2018 Country Music Award Association Awards

    2018 Country Music Award Association Awards

    Photos from the 2018 Country Music Award Association Awards on Nov. 14, 2018.

    Photos from the 2018 Country Music Award Association Awards on Nov. 14, 2018.

  • The 'worst toys' for the holidays, according to safety group

    The 'worst toys' for the holidays, according to safety group

    Tuesday, November 13 2018 6:35 PM EST2018-11-13 23:35:07 GMT

    A Black Panther “slash claw” and a plastic Power Rangers sword are among the items topping a consumer safety group’s annual list of worst toys for the holiday season.

    A Black Panther “slash claw” and a plastic Power Rangers sword are among the items topping a consumer safety group’s annual list of worst toys for the holiday season.

sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."