Keurig Dr Pepper Secures $7 Billion for JDE Peet's Acquisition
Investment firms KKR and Apollo have provided $7 billion to support Keurig Dr Pepper's acquisition of European coffee firm JDE Peet's.
The investment will give KKR and Apollo a stake in the eventual beverage business and a newly formed K-Cup pod manufacturing joint venture.
Although Wall Street was initially skeptical, financial heavyweights are now backing Keurig Dr Pepper's acquisition.
- Funds managed by Apollo and KKR have contributed $7 billion to the transactions.
- Hedge fund Starboard Value has also been building a stake in KDP since the deal was announced.
Following the investment, the company now projects net leverage to be approximately 1.0x lower at 4.
Author's summary: Keurig Dr Pepper receives $7 billion investment for JDE Peet's acquisition.