04:22 AM EDT, 08/25/2025 (MT Newswires) -- Keurig Dr Pepper ( KDP ) has agreed to acquire coffee company JDE Peet's for 15.7 billion euros ($18.37 billion) in cash, the companies said Monday.

After the anticipated H1 2026 closing, Keurig Dr Pepper ( KDP ) plans to separate into two US-listed companies, one focused on refreshment beverages and the other, via a tax-free spin-off, as a pure-play coffee company.

Under the terms of the deal, Keurig Dr Pepper ( KDP ) will pay JDE Peet's shareholders 31.85 euros per share in cash. JDE Peet's will pay a previously declared dividend of 0.36 euro per share prior to closing with no impact on the deal price, the companies said.

Following the separation, the new coffee company will be headquartered in Burlington, Massachusetts and Amsterdam, while the new refreshment beverage company will be headquartered in Frisco, Texas, the companies said.

Upon completion of the separation, Keurig Dr Pepper ( KDP ) Chief Executive Tim Cofer will head the new beverage company while Keurig Dr Pepper Finance Chief Sudhanshu Priyadarshi will become chief executive of the new coffee company, the companies said.

The acquisition of JDE Peet's is expected to results in anticipated cost synergies of about $400 million over three years as well as accretion to EPS in the first year of the merger, the companies said.