Market Overview

Mixed Drinks: Combined Keurig Dr Pepper Debuts On NYSE

Mixed Drinks: Combined Keurig Dr Pepper Debuts On NYSE
22 Stocks Moving In Monday's Pre-Market Session
This Is The Latest Marijuana Stock To Skyrocket
Weekly Top Insider Buys Highlight for the Week of Nov. –6 (GuruFocus)

Dr Pepper Snapple Group Inc. and Keurig Green Mountain in January announced a merger agreement to create Keurig Dr Pepper (NYSE: KDP).

What Happened

The combined beverage company began trading Tuesday on the New York Stock Exchange.

Why It's Important

The new company has a portfolio of consumer brands like Dr Pepper, 7 UP, Snapple, A&W, Mott's, Sunkist, Green Mountain Coffee Roasters and the Keurig single-serve coffee system. It has have pro forma combined 2017 annual revenues of approximately $11 billion.

"This transaction will deliver significant and immediate value to our shareholders, along with the opportunity to participate in the long-term upside potential of our combined company," Larry Young, president and chief executive officer of Dr Pepper Snapple, said in a statement.

Keurig CEO Bob Gamgort said the combined company has a new scale that addresses consumer needs and "unparalleled distribution capability."

What's Next

Keurig Dr Pepper expects to realize $600 million in synergies on an annual basis by 2021. The company will target debt/EBITDA of below three times within two to three years.

The stock closed Tuesday higher by more than 11 percent at $22.17.

Related Links:

Dr Pepper Snapple Downgraded On Stifel Stub Value Analysis

Barclays: Combined Dr Pepper Snapple, Keurig Are Undervalued

Deutsche Bank's Beverages Analyst Talks Dr Pepper-Keurig Union

Posted-In: beverages coffee Dr Pepper keurig soft drinksNews M&A Top Stories Best of Benzinga


Related Articles (DPS + KDP)

View Comments and Join the Discussion!

Analysts Call Verrica A Buy For Vast Molluscum Opportunity

Daimler Halts Truck Engine Sales Over Dieselgate Fears