US soft drink manufacturing company Dr Pepper Snapple is to merge with coffee company Keurig Green Mountain to form a new comoany called Keurig Dr Pepper.
This newly formed company will produce together popular brands like Sunkist, Orangina, Dr Pepper, Schweppes along with Green Mountain Coffee Roasters.
Newly formed Keurig Dr Pepper will jointly genearate an annual revenue of $11bn.
As per the deal signed by the two companies, shareholders of Dr Pepper Snapple will maintain stakes around 13% of the combined company. They will also recieve $103.75 per share in a special cash dividend.
Companies stared that this merger would help Keurig Dr Pepper to have unmatched distribution strength to reach virtually every target audiance in North America.
Dr Pepper Snapple which came out of Cadbury Schweppes in 2008, operates in more than 50 brands of drinks such as teas, carbonated soft drinks, mixers, juices, waters and other beverages.
On the other hand, US based Keurig Green Mountain is owned by private equity firm JAB. It makes over 400 types of coffee and other drinks.