Dr Pepper Snapple: shares jump on Keurig merger deal
(CercleFinance.com) - Dr Pepper Snapple's plan to merge with US coffee roaster Keurig Green Mountain sent its shares to all-time highs on Monday, as investors welcomed the deal.
The transaction will create a beverage company with a "world-class portfolio of iconic brands" such as 7Up and the Keurig single-serve coffee system and an "unrivalled" distribution network, the companies said.
Under the terms of the agreement, Dr Pepper Snapple shareholders will receive 103.75 dollars per share in a special cash dividend and retain 13% of the combined company.
The shares closed at 95.65 dollars last Friday.
The new "KDP" (Keurig Dr Pepper) will have pro-forma combined 2017 annual revenues of approximately 11 billion dollars, which is still far from sector leaders AB InBev (2016 sales of 45.5 billion dollars) and Coca-Cola (41.9 billion dollars).
KDP aims to make 600 million dollars in synergies p.a. through to 2021.
Dr Pepper Snapple shares soared - up as much as 25.5% percent at 120 dollars after the deal, while Keurig Green Mountain is now a private company.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The transaction will create a beverage company with a "world-class portfolio of iconic brands" such as 7Up and the Keurig single-serve coffee system and an "unrivalled" distribution network, the companies said.
Under the terms of the agreement, Dr Pepper Snapple shareholders will receive 103.75 dollars per share in a special cash dividend and retain 13% of the combined company.
The shares closed at 95.65 dollars last Friday.
The new "KDP" (Keurig Dr Pepper) will have pro-forma combined 2017 annual revenues of approximately 11 billion dollars, which is still far from sector leaders AB InBev (2016 sales of 45.5 billion dollars) and Coca-Cola (41.9 billion dollars).
KDP aims to make 600 million dollars in synergies p.a. through to 2021.
Dr Pepper Snapple shares soared - up as much as 25.5% percent at 120 dollars after the deal, while Keurig Green Mountain is now a private company.
Copyright (c) 2018 CercleFinance.com. All rights reserved.