Newly minted Keurig Dr Pepper (KDP) has made its first acquisition, buying Core Nutrition LLC, a maker of premium bottled waters, for $525 million.
Core, founded in 2015, makes Core Hydration, a nutrient-enhanced bottled water, and Core Organic, a fruit-enhanced hydration drink. Both already are currently distributed by KDP, and the acquirer already had an equity investment in the smaller firm.
Current sales are in excess of $200 million a year and have grown at an average annualized rate of approximately 115% over the past three years. The acquisition will be funded primarily with KDP common stock.
KDP just came into existence in July with the finalization of the merger of Keurig Green Mountain with Dr Pepper Snapple Group.
Core has been a Dr Pepper Snapple Group-allied brand since 2016, with the bigger company managing approximately two-thirds of the brand's U.S. distribution.