Keurig Dr Pepper Reveals $7 Billion Financing Plan For JDE Peet’s Deal

• KDP confirmed a $7 billion strategic investment package co-led by Apollo Global Management and KKR.
• The funding is expected to reduce net leverage to about 4.6 times at closing in the first half of 2026. 
• The $7 billion investment includes a $4 billion manufacturing joint venture and a $3 billion convertible preferred stock deal.

Keurig Dr Pepper Inc. (KDP) on Monday unveiled new strategic, financial, and leadership details surrounding its planned acquisition of JDE Peet’s and its subsequent split into two standalone businesses. 

KDP confirmed a $7 billion strategic investment package co-led by Apollo Global Management Inc. (APO) and KKR & Co. Inc.(KKR), aimed at lowering the company’s projected debt load and strengthening its balance sheet. 

The new financing structure, which supports the JDE Peet’s acquisition, is expected to reduce net leverage to about 4.6 times at closing in the first half of 2026. 

Following the announcement, Keurig Dr Pepper stock traded over 8% higher in Monday’s premarket. On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from’bearish’ territory the previous day. Message volume improved to ‘high’ from ‘low’ levels in 24 hours. 

The company detailed two major components of the investment plan. The first is a $4 billion joint venture, called the “Pod Manufacturing JV”, co-led by Apollo and KKR with participation from Goldman Sachs Alternatives. This venture will oversee K-Cup and single-serve pod manufacturing, with KDP retaining majority ownership and operational control.

The second element includes a $3 billion convertible preferred stock investment in KDP and its forthcoming Beverage Co. subsidiary, carrying a 4.75% annual dividend rate and a conversion premium of 41% over the 20-day trading average ending on October 24.

Capital Structure And Leadership Changes

KDP said both future entities, Global Coffee Co. and Beverage Co., will maintain investment-grade balance sheets, targeting leverage ratios of roughly 3.5–4.0x and 3.75–4.25x, respectively. 

Consumer goods executive Brian Driscoll will be nominated to KDP’s Board of Directors. At the same time, Tim Cofer will continue as CEO until the separation is finalized, after which he will lead Beverage Co. 

Keurig Dr Pepper stock has lost over 19% in the last 12 months. 

Also See: ProPetro Stock Surged 18% Pre-Market Today: What’s Powering The Rally?

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