Keurig Dr Pepper to buy Jacobs and L'Or owner JDE Peet's in €15.7bn deal

JDE Peet's brands include Jacobs, L’Or, Tassimo, and Douwe Egberts,

IE IRENE/ROZ 20/06/2023.

Keurig Dr Pepper will buy Dutch coffee company JDE Peet's in a €15.7bn deal, the US company said on Monday.

The merged company plans to later separate its beverage and coffee units, aiming to expand its coffee offering to more than 100 countries, it added.

Keurig Dr Pepper, created in 2018 through the merger of Keurig Green Mountain and Dr Pepper Snapple, owns brands including Dr Pepper, Snapple, 7UP, and Green Mountain Coffee.

The company has a market valuation of about €41bn, while JDE Peet's, listed in Amsterdam, is valued at €12.76bn, according to LSEG data.

Keurig's shares have risen nearly 10% this year on strong beverage sales but the company has warned its coffee segment will stay subdued for the rest of the year due to US tariffs and higher coffee prices.

JDE Peet's, which owns brands including Jacobs, L’Or, Tassimo, and Douwe Egberts, has also warned US coffee prices could rise as a result of the US administration's 50% levy on coffee beans imported from Brazil that came into force on August 6.

Prices of Arabica and Robusta beans touched record highs this year as unpredictable weather patterns pressured supply, and prices have been volatile recently.

JDE Peet's is majority-owned by Germany’s JAB, which also holds a significant minority stake in Keurig Dr Pepper, according to LSEG data.

Reuters