Keurig Dr Pepper has updated its financing plan for the acquisition of JDE Peet’s, confirming a targeted close in early April 2026 and outlining a revised capital structure for the combined business.
The company said it expects combined net leverage of approximately 4.5x following completion of the transaction.
The deal will eventually lead to a separation into two independent businesses — a North America-focused Beverage Co. and a Global Coffee Co., pending final corporate naming.
Financing Structure Expanded
Keurig Dr Pepper will finance the acquisition through a mix of roughly:
-
$9 billion in long-term debt
-
$8.5 billion in equity capital
-
Assumption of approximately $5 billion in existing JDE Peet’s bonds
As part of the update, the company increased its previously announced convertible preferred equity investment to $4.5 billion, up from $3 billion.
The investment is co-led by funds managed by affiliates of Apollo Global Management and KKR, with participation from accounts advised by T. Rowe Price.
Following the upsize, the company said it will no longer pursue a partial IPO of Beverage Co.
The preferred instrument carries an initial conversion price of $37.25 per share and a dividend rate of 4.75%.
Coffee Manufacturing Joint Venture Confirmed
Definitive agreements have also been executed for the previously announced Global Coffee Co. pod manufacturing joint venture.
The $4 billion investment into the joint venture will be co-led by Apollo and KKR, with participation from Goldman Sachs Alternatives.
The transaction remains subject to customary closing conditions.
Separation Timeline
The tax-free spin of Global Coffee Co. is expected once key milestones are met, including appropriate leverage levels and market conditions.
Operational readiness for separation is being targeted by year-end 2026.
Why It Matters for FMCG and Retail
The acquisition consolidates two major beverage and coffee platforms, combining Keurig’s North American beverage scale with JDE Peet’s global coffee footprint.
JDE Peet’s brands are widely distributed across European and international supermarket networks, while Keurig Dr Pepper holds leadership positions in carbonated soft drinks and single-serve coffee systems in North America.
The planned separation creates two focused entities — one beverage-led and one coffee-led — which may reshape supplier negotiations, category strategies and private label competition across retail markets.
The pod manufacturing joint venture also reinforces investment in single-serve formats, a structurally important segment in both grocery and out-of-home channels.
The transaction is forecast to be approximately 10% EPS accretive in its first full year.
Closing remains targeted for early April 2026.
