Keurig Dr Pepper (KDP) has received $7bn in backing from private-equity firms Apollo and KKR to support the company’s acquisition of JDE Peet’s and its subsequent plan to split into two businesses.
The 7Up maker announced its intention to acquire JDE Peet’s for more than $18bn in August.
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Following the purchase, KDP is splitting its business into two US-listed entities provisionally called Beverage Co. and Global Coffee Co., though official names are still to be revealed.
Apollo and KKR will inject $4bn into a “K-Cup pod and other single-serve manufacturing joint venture” for the Global Coffee Co. business.
The investment is being co-led by the two firms, with participation from Goldman Sachs Alternatives. KDP will keep a controlling interest in the venture and “operational control of the related assets”, KDP said.
Apollo and KKR have also signed a deal for a $3bn convertible preferred stock investment in KDP and the eventual Beverage Co.
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By GlobalDataShares in KDP were up 7.62% at $29.23 as of 10:37 GMT.
Tim Cofer, the CEO of Keurig Dr Pepper, said: “We are confident this transaction positions KDP to generate significant shareholder value, and we have robust plans to deliver with success.
“Since the announcement, we have also carefully considered shareholder feedback and are responding with decisive actions, including new strategic investments to strengthen our balance sheet and a refreshed approach to leadership structure, while kicking off rigorous transformation planning.
“We will stay flexible and responsive as we work towards the north star of establishing two strong, successful companies.”
While Cofer is heading up the Beverage Co. business, CFO Sudhanshu Priyadarshi will no longer lead the global coffee unit as had been previously suggested in August.
The company said its board of directors has started searching internally and externally for the future chief of Global Coffee Co. unit.
Apollo and KKR’s investment in KDP was announced as the drinks manufacturer released its results for the third quarter and the first nine months of 2025.
The business has raised its outlook for its 2025 constant-currency net sales, which it sees rising at a “high-single digit” rate compared to “mid-single-digit”.
In the third quarter, KDP’s net sales rose 10.7% to $4.3bn, operating income increased 10.3% to $995m and net income grew 7.5% to $662m.
The group’s US Refreshment Beverages division saw net sale grow 14.4% to $2.7bn, attributed to volume and mix growth of 11.2% and favourable net price realisation.
US coffee’s net sales growth was a bit less, up 1.5% at $991m, being hit by volume/mix decline, and reflecting “K-Cup pricing actions taken to combat inflation”.
