Keurig Dr Pepper Bets $18 Billion on Coffee Takeover, Plans Big Split

Keurig Dr Pepper is brewing up one of the biggest deals Europe has seen in years: an $18 billion takeover of JDE Peet’s, the Dutch coffee giant behind Peet’s Coffee, Stumptown, Jacobs, L’OR, Tassimo and Douwe Egberts.

The all-cash deal, announced Monday, will give JDE shareholders €31.85 a share — a 33% premium — and mark the largest European acquisition in more than two years. Once complete, JDE will be delisted from the Amsterdam exchange.

But this isn’t just about adding another brand to Keurig’s roster of sodas and K-Cups. The plan is to break Keurig Dr Pepper apart, creating two new publicly traded US companies: Global Coffee Co., with $16 billion in annual sales, and Beverage Co., with about $11 billion. Global Coffee will go head-to-head with Nestlé in the $400 billion coffee market, while Beverage Co. will stick to sodas, teas, and energy drinks in North America.

The companies say the merger will save about $400 million in costs over three years. Still, Wall Street wasn’t thrilled: Keurig’s stock tumbled nearly 10% Monday after the news broke. Meanwhile, JDE Peet’s shares soared more than 17%.

The timing comes as coffee drinkers are already paying more for their morning fix. US coffee prices are up nearly 15% from last year, driven by droughts in Brazil and a hefty 50% tariff President Trump slapped on imported beans.

Keurig, valued at around $48 billion, is betting that scale — plus a split into two specialized companies — will give investors a clearer shot at growth. CEO Tim Cofer will lead Beverage Co., while CFO Sudhanshu Priyadarshi takes the reins at Global Coffee Co.

If all goes to plan, the split will be completed by late 2026, leaving behind two new players — one aiming to be a global coffee powerhouse, the other a soda and beverage giant.

With input from USA Today, FOX Business, Reuters, and Investor’s Business Daily.