Keurig Dr Pepper secures $7bn investment to fund business split

Core Insights - Keurig Dr Pepper (KDP) has secured $7 billion in backing from private equity firms Apollo and KKR to facilitate its acquisition of JDE Peet's and subsequent business split into two entities [1][2] - The acquisition of JDE Peet's is valued at over $18 billion, with plans to create Beverage Co. and Global Coffee Co. [1] - Apollo and KKR will invest $3 billion into Beverage Co. and $4 billion into a joint venture for Global Coffee Co. [2] Financial Performance - KDP reported a 10.7% increase in net sales to $4.3 billion for the third quarter, with operating income rising 10.3% to $995 million and net income growing 7.5% to $662 million [6] - The US Refreshment Beverages division experienced a 14.4% increase in net sales to $2.7 billion, driven by volume and mix growth of 11.2% and favorable net price realization [6] Strategic Developments - KDP is undergoing a leadership restructuring, with Tim Cofer leading Beverage Co. and a search underway for the future chief of Global Coffee Co. [4][5] - The company has raised its outlook for full year 2025 constant currency net sales growth from "mid-single-digit" to "high-single-digit" growth [5]