Keurig Dr. Pepper will acquire JDE Peet's for about $18 billion in an all-cash transaction and will split into two independent publicly traded companies: Global Coffee Co. and Beverage Co. Global Coffee Co. will have approximately $16 billion in combined annual sales and Beverage Co. will have more than $11 billion in annual net sales. The acquisition offers JDE Peet's shareholders 31.85 euros per share (about $37), a 33% premium to the 90-day volume-weighted average. JDE Peet's reported sales growth of over 19% year-over-year and owns Peet's Coffee, Stumptown Coffee Roasters and Jacobs. Alfred Peet opened the first Peet's Coffee in 1966 near UC Berkeley after working at his father's coffee business in the Netherlands.
The American beverage firm Keurig Dr. Pepper plans to buy JDE Peet's, the European parent company of California's gourmet coffee trailblazer, Peet's Coffee, in an all-cash transaction worth about $18 billion. Keurig Dr. Pepper will be split into two independent companies, one of which will focus on coffee, according to a Monday release. The new coffee company will be called Global Coffee Co. and will be publicly traded in the U.S., as will the beverage company, which will be called Beverage Co.
Under the terms of the deal, Keurig Dr. Pepper will pay JDE Peet's shareholders 31.85 euros per share in cash, equivalent to about $37 per share. The value is a 33% premium to JDE Peet's 90-day volume-weighted average stock price. After the deal was announced, JDE Peet's shares climbed more than 15%. Keurig Dr. Pepper shares fell more than 10%.
According to JDE Peet's half-year report released in July, sales for the company grew more than 19% over the past year. Along with Peet's Coffee, JDE Peet's owns popular brands including Stumptown Coffee Roasters and German coffee name Jacobs. Peet's Coffee has made a name for itself as a San Francisco-based destination that helped bring dark, gourmet coffee to American consumers.
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