Keurig Green Mountain Inc. announced plans Monday to buy Dr Pepper Snapple Group, creating a beverage company with annual sales of about $11 billion.
By comparison, PepsiCo had sales in 2016 of $63 billion and Coca-Cola $41 billion.
Keurig Green Mountain, a privately held company, will pay Dr Pepper Snapple shareholders $103.75 a share in a special cash dividend and keep 13 percent of the combined company.
Keurig CEO Bob Gamgort will lead the new company, called Keurig Dr Pepper. Larry Young, CEO at Dr Pepper Snapple, will become a director.
Credit: Richard Drew
Credit: Richard Drew
Keurig and Dr Pepper Snapple operations will continue at their current locations. Keurig is based in Waterbury, Vermont, and Dr Pepper Snapple headquarters are in Plano, Texas.
The deal is expected to close later this year, however, it still must be approved by shareholders of Dr Pepper Snapple.
The Associated Press contributed to this report.
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