U.S. beverage giant Keurig Dr Pepper (KDP) has agreed to acquire JDE Peet’s, the world’s largest pure-play coffee company, in an $18 billion deal that marks Europe’s biggest acquisition in more than two years. The move positions Keurig to go head-to-head with market leader Nestlé in the global coffee sector.
The agreement, announced Monday, values JDE Peet’s at a 20% premium over its last closing price and will see the Dutch company delisted from Amsterdam’s stock exchange. Following the acquisition, Keurig plans to separate its beverage and coffee operations into two new U.S.-listed companies: Global Coffee Co and Beverage Co.
Strategic Impact
The merger is expected to generate $400 million in annual cost savings and strengthen both companies against challenges from rising tariffs on coffee imports and ongoing trade tensions. Analysts estimate the combined coffee business will rival Nestlé’s, each holding roughly 20% of the global packaged coffee market.
The deal comes as coffee prices hit record highs, fueled by droughts in Brazil and Vietnam and the U.S. decision to impose a 50% tariff on Brazilian beans. Keurig’s strong footprint in North America will be paired with JDE Peet’s dominant position in Europe, providing a platform for growth in emerging markets where coffee demand is accelerating.
“Bringing these two coffee businesses together reduces JDE Peet’s reliance on Europe while giving Keurig global exposure,” said Jon Cox, an analyst at Kepler Cheuvreux.
Post-Acquisition Structure
The separation of Keurig’s businesses effectively unwinds part of the 2018 merger that created Keurig Dr Pepper by combining Keurig Green Mountain with Dr Pepper Snapple.
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Global Coffee Co, with around $16 billion in annual net sales, will focus on the $400 billion global coffee market.
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Beverage Co, generating more than $11 billion annually, will target the $300 billion North American refreshment drinks market.
The two entities will be led by Keurig CEO Bob Cofer and CFO Sudhanshu Priyadarshi, respectively.
Market Reaction
Shares of JDE Peet’s surged 17.5%, their biggest single-day gain on record, while Keurig’s shares slipped about 7% in U.S. trading.
At Friday’s close, JDE Peet’s was valued at €12.76 billion, while Keurig’s market cap stood at around $48 billion, according to LSEG data.
JDE Peet’s, whose brands include Jacobs, L’Or, Tassimo, and Douwe Egberts, is majority-owned by JAB Holding, the investment firm of Germany’s billionaire Reimann family. JAB has committed to tendering its 68% stake in JDE Peet’s. The firm also owns a 4.4% stake in Keurig and will hold nearly 5% in each of the two new entities once the deal and split are completed.
Timeline
The acquisition is expected to close in the first half of 2026, with the spin-off into two separate companies planned by the end of that year.
($1 = €0.8544)
