06:48 AM EDT, 08/25/2025 (MT Newswires) -- Keurig Dr Pepper ( KDP ) has agreed to acquire Dutch coffee maker JDE Peet's in an all-cash deal worth about 15.7 billion euros ($18.37 billion), with the US beverage company planning to separate into two independent entities after the transaction closes.

The maker of Keurig coffee pods will launch a tender offer to acquire all shares of JDE Peet's for 31.85 euros a share, the companies said in a joint statement Monday. The deal is expected to complete in the first half of next year.

An affiliate of JAB Holdings, Acorn Holdings, and certain JDE Peet's directors and officers, who collectively own 69% of the voting power of JDE Peet's stock, have agreed to tender their shares and vote in favor of the transaction. In October 2024, investment firm JAB purchased Mondelez International's (MDLZ) 86 million shares in JDE Peet's for 25.10 euros per share.

Keurig Dr Pepper ( KDP ) estimates the transaction to be accretive to its earnings on a per-share basis in the first year of the combination and generate roughly $400 million in cost synergies over three years.

Following completion of the transaction, Keurig Dr Pepper ( KDP ) plans to split into two publicly traded companies in the US "as soon as practicable," with one entity focusing on its refreshment beverages portfolio and the other working as a pure-play coffee company. The planned separation requires final approval from the company's board of directors.

"Through the complementary combination of Keurig and JDE Peet's, we are seizing an exceptional opportunity to create a global coffee giant," Keurig Dr Pepper ( KDP ) Chief Executive Tim Cofer said in the statement. "This is the right time for this transaction, with (Keurig Dr Pepper ( KDP )) in a position of operational and financial strength, momentum across our evolved portfolio, and increasing coffee category resilience."

Shares of Keurig Dr Pepper ( KDP ) declined 3.2% in the most recent premarket activity. The stock has gained about 11% so far this year.

In July, Keurig Dr Pepper ( KDP ) reported second-quarter sales of $4.16 billion, up from $3.92 billion the year before. The US refreshment beverages segment recorded an 11% increase in sales to $2.66 billion, while the US coffee division slipped 0.2% to $948 million. At the time, the company projected its full-year adjusted EPS to grow in a high-single-digit range and sales to rise by mid-single-digit in constant currency terms.

Following the separation, the new coffee company will have its global headquarters based in Burlington, Massachusetts. The beverages entity will be based in Frisco, Texas.

Cofer will lead the new beverage company, while Chief Financial Officer Sudhanshu Priyadarshi will become the CEO of the coffee entity. JDE Peet's CEO Rafa Oliveira will continue to head the Dutch firm until the deal closes.

"This highly complementary transaction will deliver an attractive premium for our shareholders and will create compelling future growth opportunities for our employees, customers and other stakeholders," according to Oliveira.