Keurig Dr Pepper Merger Agreement

The Keurig Dr Pepper Merger Agreement: What You Need to Know

In 2018, Keurig Green Mountain and Dr Pepper Snapple Group announced their merger to create Keurig Dr Pepper. This was a significant move in the beverage industry, with the new company becoming the third-largest non-alcoholic beverage company in the United States. But what exactly does this merger agreement mean for the company and its stakeholders?

The Basics of the Merger Agreement

Under the terms of the merger agreement, Keurig Green Mountain agreed to acquire Dr Pepper Snapple Group in a deal worth $18.7 billion. The new company, Keurig Dr Pepper, would be owned in equal parts by both entities, with Keurig Green Mountain’s parent company, JAB Holdings, controlling the majority stake.

The merger agreement gave Dr Pepper Snapple Group shareholders the option to receive either $103.75 per share in cash or 13% of the new company’s shares.

Benefits of the Merger Agreement

The merger between Keurig Green Mountain and Dr Pepper Snapple Group offers several benefits to both companies and their stakeholders.

Firstly, the merger creates a more diversified non-alcoholic beverage company. Keurig Green Mountain, known for its single-serve coffee products, can leverage Dr Pepper Snapple Group’s extensive portfolio of popular beverages like Dr Pepper, Snapple, and 7UP.

Secondly, the merger agreement strengthens Keurig Green Mountain’s position in the beverage industry. The two companies’ combined resources, expertise, and brands allow for increased innovation and product development. This creates a more competitive company that can better compete with industry giants Coca-Cola and PepsiCo.

Thirdly, the merger agreement creates significant cost synergies for Keurig Dr Pepper. The new company can pool resources, streamline operations, and eliminate redundancies in areas such as distribution, marketing, and manufacturing.

Potential Challenges

While the merger agreement offers many benefits, it also presents some potential challenges.

One of the biggest challenges is the integration of the two companies. Merging two large organizations with different cultures, operations, and systems can be challenging. It will take time and effort to ensure a smooth transition and avoid any disruptions to the business.

Another potential challenge is the impact of the merger agreement on Dr Pepper Snapple Group’s existing relationships with retailers and distributors. These relationships are critical to the company’s success, and any disruption could have a negative impact on sales and revenue.


The Keurig Dr Pepper merger agreement is a significant move in the beverage industry. It creates a more diversified and competitive company with significant cost synergies. However, the integration of the two companies and the potential impact on Dr Pepper Snapple Group’s existing relationships may present challenges. Overall, the merger agreement is a positive step for both companies and their stakeholders and has the potential to create significant long-term value.