Keurig Dr Pepper Agrees to Buy 60% Stake in Ghost Energy for $990 Million
Keurig Dr Pepper (KDP) has entered into a definitive agreement to acquire Ghost Lifestyle LLC and Ghost Beverages LLC, makers of the Ghost sports nutrition brand of ready-to-drink energy products. Initially, KDP will purchase a 60% stake in Ghost, with the remaining stake to be acquired in 2028.
The deal for the initial portion of the business — which will cost KDP $990 million — is expected to close in late 2024 or early 2025, subject to closing conditions. Ghost co-founders Dan Lourenco and Ryan Hughes will stay aboard and lead the Ghost business, which will slot into KDP’s U.S. Refreshment Beverages segment.
According to the release from KDP, net sales for Ghost, which was founded in 2016, have more than quadrupled over the past three years. KDP says the deal will “substantially enhance” the company’s presence in the energy drink category.
In a separate release, Justin Whitmore, chief strategy officer for KDP, said of the acquisition: “We have been competing in and closely examining the energy category for several years, and during this time, Ghost has emerged as a standout brand. It’s one of the fastest-growing names in the sector, featuring engaging packaging, a variety of exciting flavors, and a strong lifestyle positioning that resonates with consumers.”
In the primary announcement of the acquisition, CEO Tim Cofer added: “The energy category is poised for continued long-term growth, which KDP expects to increasingly capture through our platform-based approach.”
In a separate statement from Cofer, the CEO said the company has “accelerated our push into the category over the last 24 months with Ghost, C4, and Black Rifle energy.” Cofer also noted that KDP just signed a distribution agreement with Nutrabolt for Bloom RTD Energy, which he called “a highly promising, emerging and distinctive beverage brand with a female-oriented skew.”
Ghost will be fully consolidated into KDP’s financial results upon close of the initial transaction, which the company expects to have a neutral to modestly accretive effect upon adjusted EPS in 2025. The purchase of the remaining 40% of the company in 2028 will be at a pre-negotiated valuation reflecting Ghost’s 2027 financial performance, the KDP release noted.
KDP will invest up to $250 million starting in mid-2025 to transition Ghost’s existing distribution agreements before it sells and distributes the brand through its own DSD network.
