Keurig Dr Pepper Announces $7 Billion in Investments Co-led by Apollo and KKR

Paul, Weiss advised Keurig Dr Pepper on two strategic investments totaling $7 billion from investors co-led by funds managed by affiliates of Apollo Global Management and funds and accounts managed by KKR. The investments are related to KDP’s recent $18.4 billion all-cash acquisition of leading global coffee company JDE Peet’s and plans to separate its coffee and refreshment beverage business into two independent U.S.-listed companies. Paul, Weiss is also advising KDP on the JDE Peet’s acquisition and announced separation.

KDP has entered into a binding commitment letter and term sheet for a $4 billion investment in a newly formed K-Cup pod and other single-serve manufacturing joint venture co-led by Apollo and KKR, with participation from Goldman Sachs Alternatives. KDP also entered into a definitive agreement for a $3 billion convertible preferred stock investment in KDP and the eventual Beverage Co., co-led by KKR and Apollo. Beverage Co. is expected to be a fast-growing North American refreshment beverages business with about $11 billion in annual net sales from brands including Dr Pepper, Canada Dry, 7UP and A&W.

The Paul, Weiss team was led by corporate partners Nickolas Bogdanovich, Ravi Purohit, Timothy Cruickshank, Chelsea Darnell and James Langston, and included partners Matthew Leist, Caroline Epstein, Luke Jennings, Michael Spirtos and Tony Rim; tax partners Brian Krause, Jeffrey Samuels and Robert Holo and counsel Alyssa Wolpin; executive compensation partner Matthew Friestedt; and intellectual property partners Claudine Meredith-Goujon, Jonathan Ashtor and Brianna van Kan.