18 billion for Jacobs and Co.

Billion-dollar deal: US beverage conglomerate Keurig Dr Pepper has signed an agreement to acquire European coffee company JDE Peet's for approximately $18 billion. This transaction marks the beginning of a strategic realignment, with coffee brands to be spun off into a separate publicly traded company.

This acquisition is significant for Keurig Dr Pepper in multiple ways. It essentially reverses the merger that combined coffee manufacturer Keurig and beverage producer Dr Pepper in 2018 – which was the world's largest non-alcoholic beverage transaction at the time.

The company to be acquired, Amsterdam-based JDE Peet's, has a market value of about $15 billion, making it significantly smaller than Keurig Dr Pepper, which has a market capitalization of around $50 billion. JDE Peet's brings a portfolio of over 50 well-known brands to the transaction, including L'Or, Peet's, Jacobs, Senseo, Tassimo, Douwe Egberts, Old Town, Super, Pickwick, and Moccona.

Behind the scenes, the German-Austrian billionaire Reimann family plays a central role. Through Luxembourg-based JAB Holding and Acorn Holdings BV, which according to the corporate website holds a 68% stake in JDE Peet's, the family is indirectly not only invested in JDE Peet's but also already has interests in Keurig Dr Pepper.

Upon completion of the acquisition, Keurig Dr Pepper has a clear plan: the company intends to split into two independent, publicly traded companies in the US. One will focus entirely on the coffee business, while the other will concentrate on soft drinks such as Dr Pepper, 7UP, Snapple, as well as energy drinks from the Bloom and Ghost brands.

MK