Keurig Dr Pepper Raises Beverage Co. Equity to $4.5B, Seeks 4.5x Leverage
Keurig Dr Pepper plans to close JDE Peet's acquisition in early April 2026 with projected net leverage of about 4.5x, funding the deal via $9B debt, $8.5B equity and $5B bonds. The company raised Beverage Co. convertible preferred equity to $4.5B from $3B and finalized a Global Coffee Co. JV.
1. Acquisition Financing Updated
Keurig Dr Pepper will finance its $22.5B JDE Peet’s acquisition with approximately $9B of long-term debt, $8.5B of new equity capital and the assumption of roughly $5B of existing JDE Peet’s bonds, targeting closing in early April 2026 and a combined net leverage ratio of about 4.5x.
2. Beverage Co. Equity Upsize
The company increased the size of its Beverage Co. convertible preferred equity investment to $4.5B from $3B, led by Apollo and KKR with support from T. Rowe Price and other long-term investors, removing the need for a partial Beverage Co. IPO.
3. Global Coffee Co. JV and Separation
Definitive agreements were signed for the Global Coffee Co. Pod Manufacturing joint venture consistent with October 2025 terms, and the tax-free spin-off of Global Coffee Co. is targeted for operational readiness by year-end 2026, subject to leverage and market conditions.