Keurig buys Dr Pepper, Snapple creating $11 billion beverage behemoth

Credit: DaytonDailyNews

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Keurig Buys Snapple, Dr. Pepper Creating Beverage Behemoth

Credit: DaytonDailyNews

Keurig Green Mountain Inc. announced plans Monday to buy Dr Pepper Snapple Group, creating a beverage company with annual sales of about $11 billion.

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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.

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The Dr. Pepper Snapple Group logo appears above a trading post on the floor of the New York Stock Exchange, Monday, Jan. 29, 2018. Keurig is buying Dr. Pepper Snapple Group Inc., creating a beverage giant with about $11 billion in annual sales. (AP Photo/Richard Drew)

Credit: Richard Drew

The Dr. Pepper Snapple Group logo appears above a trading post on the floor of the New York Stock Exchange, Monday, Jan. 29, 2018. Keurig is buying Dr. Pepper Snapple Group Inc., creating a beverage giant with about $11 billion in annual sales. (AP Photo/Richard Drew)

Credit: Richard Drew

caption arrowCaption
The Dr. Pepper Snapple Group logo appears above a trading post on the floor of the New York Stock Exchange, Monday, Jan. 29, 2018. Keurig is buying Dr. Pepper Snapple Group Inc., creating a beverage giant with about $11 billion in annual sales. (AP Photo/Richard Drew)

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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