Keurig Dr Pepper Gets $7 Billion From KKR and Apollo for JDE Peet’s Acquisition

Although Wall Street was a little skeptical at first, some financial heavyweights are getting on board with Keurig Dr Pepper’s acquisition of European coffee firm JDE Peet’s and the subsequent split of the combined company into separate coffee and beverage businesses.

Funds managed by investment firms Apollo and KKR kicked in $7 billion to help fund the transactions. They join hedge fund Starboard Value, which reportedly has been building a stake in KDP since the deal was announced and has been in private talks over recent weeks with Keurig Dr Pepper's management and board, according to the Financial Times.

“As a result, the company now projects net leverage will be [approximately] 1.0x lower at 4.6x upon acquisition close, expected in the first half of 2026, with estimated adjusted [earnings per share] accretion of [approximately] 10% in the first full year,” KDP wrote in an Oct. 27 update.

The specifics:

• “Global Coffee Co. Pod Manufacturing Joint Venture: A binding commitment letter and term sheet for a $4 billion investment in a newly formed K-Cup pod and other single-serve manufacturing joint venture, co-led by Apollo and KKR, with participation from Goldman Sachs Alternatives. KDP will retain a controlling interest and operational control of the related assets.

• “Strategic Beverage Co. Investment: A definitive agreement for a $3 billion convertible preferred stock investment in the company and the eventual Beverage Co., co-led by KKR and Apollo.”

KDP announced its intention to acquire JDE Peet's for more than $18 billion in August, then to split its business into two U.S.-listed entities tentatively called Beverage Co. and Global Coffee Co.

Shares in KDP increased 7.62% following the announcements.

The two investors spoke positively of KDP’s plans. "Keurig Dr Pepper's separation plan represents a pivotal moment for the company, and we are proud to support this next phase through a comprehensive capital solution … in partnership with KKR," said Apollo Partners Jamshid Ehsani and Matt Nord.

KKR added, "KDP is a high-quality, blue-chip company, and we're pleased to provide a partnership capital solution to support the ongoing success of its two leading businesses."

Tim Cofer, KDP’s CEO, promised, "We are confident this transaction positions KDP to generate significant shareholder value, and we have robust plans to deliver with success. Since the announcement, we have also carefully considered shareholder feedback and are responding with decisive actions, including new strategic investments to strengthen our balance sheet and a refreshed approach to leadership structure, while kicking off rigorous transformation planning. We will stay flexible and responsive as we work towards the north star of establishing two strong, successful companies."

While Cofer will helm the Beverage Co. business, CFO Sudhanshu Priyadarshi will no longer lead the global coffee unit as had been previously suggested in August. The company said its board of directors has started searching internally and externally for the future chief of Global Coffee Co. unit.

The Apollo and KKR investments were disclosed during KDP’s results for the third quarter and the first nine months of 2025. Third-quarter sales rose 10.7% to $4.3 billion with net income of $662 million, up 7.5%.

While the beverage businesses carried the day, coffee sales grew just 1.5% to $991 million, the result of price inflation. “Favorable net price realization of 5.5% was offset by a volume/mix decline of 4.0%. Net sales growth reflected K-Cup pricing actions taken to combat inflation, partially offset by pod and brewer shipment declines.”