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Keurig Dr Pepper to acquire JDE Peet in a blockbuster $18.4 billion transaction designed to forge a “global coffee champion.” The deal, announced Monday, unites Keurig’s single-serve dominance with JDE Peet’s powerhouse brands like Jacobs, L’OR, and Peet’s Coffee. Three heavyweight law firms are steering the cross-border pact.

Paul Weiss Rifkind Wharton & Garrison LLP and Stibbe NV are advising Keurig Dr Pepper (KDP), while Netherlands-based JDE Peet’s tapped A&O Shearman for guidance.

Deal Terms and Structure

Under the agreement, KDP will launch an all-cash tender offer to acquire all outstanding JDE Peet’s shares, valued at roughly €15.7 billion ($18.4 billion).

Once finalized, KDP plans to split into two publicly traded U.S. companies:

• Global Coffee Co. – with $16 billion in annual sales, uniting KDP’s single-serve system with JDE Peet’s brands, headquartered in Burlington, Massachusetts, and Amsterdam.

• Beverage Co. – boasting $11 billion in sales, anchored in Frisco, Texas, and home to iconic soft drinks including Dr Pepper, Canada Dry, and 7UP.

Leadership Shakeup

KDP CEO Tim Cofer will helm the new Beverage Co., while current CFO Sudhanshu Priyadarshi will lead Global Coffee Co. JDE Peet’s CEO Rafa Oliveira will remain in place until the deal’s close.

“Through the complementary combination of Keurig and JDE Peet’s, we are seizing an exceptional opportunity to create a global coffee giant,” said Cofer. “The timing is right—our portfolio is strong, momentum is building, and the coffee category is proving its resilience.”

Oliveira echoed the optimism: “We are incredibly proud of the formidable global platform we have built at JDE Peet’s. Together with Keurig, we look forward to powering a new era of coffee innovation and leadership.”

Backing and Financing

The deal already has strong backing from Acorn Holdings, an affiliate of JAB Holding, along with JDE directors and officers controlling nearly 69% of voting power.

Financing will come through a blend of new debt and cash. Advisers include:

• Lazard and Morgan Stanley & Co. for KDP, with financing secured through Morgan Stanley and Mitsubishi UFJ Financial Group.

• BofA Securities for JDE Peet’s.

• Sullivan & Cromwell LLP for Lazard, led by Stephen M. Kotran.

• Cleary Gottlieb Steen & Hamilton LLP handling KDP’s global antitrust work, with partners Leah Brannon and Alan Freedman.

• Paul Weiss partners James E. Langston and Chelsea N. Darnell guiding KDP.

• A&O Shearman partners Tim Stevens and Olivier Valk leading for JDE Peet’s, joined by a robust team of cross-border experts.

Closing Timeline

The companies anticipate closing the acquisition in the first half of 2026, subject to regulatory approvals. If completed, the deal will set the stage for one of the most influential coffee alliances the world has ever seen.