08:17 AM EDT, 10/27/2025 (MT Newswires) -- Keurig Dr Pepper ( KDP ) said Monday it entered into two investment agreements totaling $7 billion, co-led by funds managed by Apollo (APO) and KKR (KKR), in connection with JDE Peet's acquisition and subsequent separation into two independent companies, Beverage Co. and Global Coffee Co.

The first transaction involves a $4 billion investment in a new K-Cup pod and single-serve manufacturing joint venture co-led by Apollo and KKR, with participation from Goldman Sachs' ( GS ) alternative investment arm, the company said.

Keurid Dr Pepper also said it will retain a controlling stake and operational control in the Global Coffee Co. pod manufacturing JV, with an all-in cost of capital is expected to be 7.3% to 7.4% over the next 10 years.

The second deal is for a $3 billion convertible preferred stock investment in Keurig Dr Pepper ( KDP ) and Beverage Co., with an initial conversion price of $37.25 per share and an annual dividend rate of 4.75% paid on an as-converted basis.

Keurig Dr Pepper ( KDP ) said target net leverage ratios at separation are expected to be about 3.5x to 4.0x for Beverage Co. and 3.75x to 4.25x for Global Coffee Co. The company said it is exploring additional options to expedite deleveraging and achieve these targets, including non-core asset sales and other capital investments.

Keurig Dr Pepper ( KDP ) said it plans to be operationally ready for the separation by the end of next year. Its Chief Executive Officer Tim Cofer will continue leading the company until the separation and then become CEO of Beverage Co., while a CEO search is underway for Global Coffee.

Shares of the company were over 8% higher in recent premarket activity.