Keurig Is Merging with Dr Pepper Snapple
The Burlington, Massachusetts-based coffee giant is combining forces with the soft drink scion.
There’s buzz about your caffeine buzz.
Coffee drinkers and soda sippers alike delight in a quick jolt of liquid energy, and soon, they’ll be going to the same source for that morning burst. Burlington, Massachusetts-based Keurig Green Mountain Inc. and the Dr Pepper Snapple Group announced on Monday their intent to merge into one mega-distributor of jittery drinks, Boston Business Journal reports.
The new company will unite carbonated favorites like Dr Pepper and 7 Up with some of the single-serve Keurig pods you and your office pals just can’t quit. The deal is worth more than $21 billion, Reuters reports, and Dr Pepper’s stock prices looked like a weary soul whose morning cup of java suddenly kicked on Monday, as shares jumped 32 percent to a record $126.14.
According to the BBJ, Plano, Texas-based Dr Pepper Snapple will keep its digs in the Lone Star state, but Bob Gamgort, the Keurig CEO who will run the combined company, will continue to call Burlington home. As of September 2015, around 6,000 people worked for Keurig, which owns a 425,000-square-foot research center in Burlington.
Keurig—whose shareholders will own 87 percent of the joint company—is overseen by the JAB investor group, which also owns Krispy Kreme and Panera, according to the Wall Street Journal. The company made headlines in November, when conservatives began destroying their coffee machines after Keurig pulled its ads from Sean Hannity’s Fox News show. Dr Pepper doesn’t seem to mind.