Keurig Dr Pepper to buy Peet’s coffee for $18bn

American drinks giant Keurig Dr Pepper agreed to buy the Dutch coffee company JDE Peet for 15.7 billion euros (13.6 billion pounds Sterling, $ 18.4 billion) in the largest European acquisition in more than two years.

The companies plan to divide into two companies listed in the United States after the merger, one focused on coffee brands, notably Douwe Egberts and gold – while the other will sell carbonated drinks such as Schweppes, Snapple and 7 Up.

The leaders said that the purchase was intended to create a “resilient and diversified” coffee company, forming a “world coffee champion” at a time when industry is struggling with high prices and prices for coffee beans.

And Keurig’s boss Dr Pepper, Tim Cofer, said it was “the right time” for the transaction.

But the actions of the company flowed more than 7% after the agreement was announced in the middle of the concerns that it moved far from the strategy that created the American drinks giant – a merger between Dr. Pepper’s Soda Business and Green Mountain Coffee.

At the time, the leaders said they had seen advantages in the combination of the distribution network, but he had trouble keeping this promise.

Last month, the leaders of Keurig Dr Pepper told investors that they expected that the growth of his coffee business remains “moderate” this year, partially quoting the price of prices in the United States, its largest market.

The new general company for soft drinks will be based in Texas and managed by Mr. Cofer.

Meanwhile, the new merged coffee company, the headquarters of which are separately in the Massachusetts, will boast of a portfolio of brands representing $ 16 billion in annual sales.

Managers said it would benefit from a global manufacturing footprint of more than 40 facilities.

Jacobs Douwe Egberts merged with Peet’s in 2019, creating JDE Peet’s, who was made public next year.

But the company had trouble meeting expectations at a time when droughts in large coffee producing countries such as Brazil and Vietnam increased raw coffee prices.

Earlier this year, he clashed with retailers in Europe on price increases, although she recently told investors that she had resolved most of these disputes.

The agreement estimates JDE Peet’s shares at € 31.85 each, around 20% higher than the price they obtained before the agreement of the agreement started to circulate last week, although still below their peak of 2020.

Gains are a boon for Jab Holding CO, the investment company belonging to the German family Reimann, which held almost 70% of the voting power in JDE Peet’s.

It also holds around 4% of Keurig Dr Pepper.