BURLINGTON, MASS. — Keurig Dr Pepper Inc. has completed its acquisition of 96.22% of the shares of JDE Peet’s, Amsterdam, The Netherlands, for approximately $18.4 billion. After an interim operating period, Keurig Dr Pepper plans to separate into two independent, US-listed publicly traded companies, creating a cold beverage-focused refreshment company and a global coffee company.
The spun-off coffee company will include brands like Keurig, Jacobs, L’OR and Peet’s Global Coffee Co. The company will have a manufacturing footprint with more than 40 facilities around the world.
The board of directors of Keurig Dr Pepper has named Rafael Oliveira, current chief executive officer of JDE Peet’s, as CEO of its coffee operating unit and as CEO for the future global coffee company following the planned separation. Previously, Keurig Dr Pepper had said former chief financial officer Sudhanshu Priyadarshi would become CEO of the coffee business, but he is now set to leave the company on April 7.
During the integration period Keurig Dr Pepper said Oliveira will join its executive leadership team, reporting to Tim Cofer, CEO of Keurig Dr Pepper. Cofer is expected to take over as CEO of the future cold beverage-focused refreshment company, which includes such brands as Dr Pepper, 7UP, Canada Dry, A&W and many others.
“Our acquisition of JDE Peet’s marks a defining step in our value creation strategy, and Rafa is the right choice to lead the combined coffee business and launch (the global coffee company),” said Pam Patsley, chair of the Keurig Dr Pepper board. “Our board conducted a robust and rigorous process that considered a range of internal and external candidates, and we are confident Rafa will be an exceptional leader for this new company. With proven leadership across complex global markets and a commitment to driving financial results, he has set a course for growth at JDE Peet’s. With a singular focus on coffee, the newly integrated coffee business will be poised to create value and growth opportunities for employees, partners, customers, and shareholders.”
Oliveira called the combination of Keurig Dr Pepper and JDE Peet’s “an incredible opportunity to create the future of coffee.”
“(The global coffee company) will aim to be the best coffee company in the world by combining global reach with local expertise to operate across all formats, segments, channels and price points,” Oliveira said. “As I’ve gotten to know the board, Tim and the KDP leadership team, it has only strengthened my belief in the bold vision for the new company. I’m honored and excited to work with our teams around the world as we serve consumers with the coffee experiences they love.”
The headquarters for the beverage company will be in Frisco, Texas, while the coffee company will have its global headquarters in Burlington and its international headquarters will be in Amsterdam.
The separation of the two companies will be based on the achievement of key benchmarks, including appropriate leverage levels at each company, and supportive market conditions, Keurig Dr Pepper said. The target date for the separation is by year-end 2026, Keurig Dr Pepper said.
