Core Viewpoint - The acquisition of JDE Peet's by Keurig Dr Pepper (KDP) aims to create a global coffee leader, enhancing KDP's coffee positioning and establishing two independent companies focused on distinct beverage markets [1][4][6] Acquisition Details - KDP will acquire JDE Peet's for €31.85 per share, totaling approximately €15.7 billion, which represents a 33% premium over JDE Peet's 90-day average stock price [2][16] - The transaction will be funded through a combination of new debt and cash on hand, with KDP maintaining an investment-grade rating [17][54] Strategic Rationale - The acquisition is expected to unlock approximately $400 million in cost synergies over three years and provide earnings per share (EPS) accretion starting in the first year [4][6] - The combined company will have a strong, diversified global coffee portfolio, reaching over 100 countries and holding leading market positions in 40 of them [5][11] Company Structure Post-Acquisition - Upon separation, Global Coffee Co. will be the world's largest pure-play coffee company with approximately $16 billion in annual net sales, while Beverage Co. will focus on the North American refreshment beverage market with over $11 billion in annual net sales [5][6] - Tim Cofer will serve as CEO of Beverage Co., and Sudhanshu Priyadarshi will lead Global Coffee Co. after the separation [1][14] Market Position and Growth Potential - Global Coffee Co. will leverage its extensive portfolio, including brands like Keurig, Jacobs, and L'OR, to drive innovation and growth in the $400 billion coffee category [5][10] - Beverage Co. will capitalize on its strong free cash flow and capital-efficient growth model to enhance shareholder returns and support dynamic capital allocation [7][23] Future Outlook - The transaction is expected to close in the first half of 2026, subject to customary conditions and regulatory approvals [18][20] - Both companies will be positioned to deliver attractive returns to their investors through tailored growth strategies and optimized operating models [9][10]