KDP · 8-K · 20261103PR000064

Acquisition / Partnership / Divestiture

Keurig Dr Pepper Inc. · 2026-11-03 · Importance 71 · Surprise 60

The pro forma financing assumptions for the JDE Peet’s Acquisition include a $3.6 billion delayed-draw term loan, approximately $6 billion of senior unsecured notes, a $4 billion JV investment, and $4.5 billion of convertible preferred stock. For the last twelve months ended September 30, 2026, acquisition, integration, and financing costs associated with the anticipated JDE Peet’s acquisition and subsequent spin of Global Coffee Co. were $855 million. The reconciliation also included $361 million of acquired-inventory step-up and $10 million of integration costs for acquisitions excluding JDE Peet’s.

Key facts

• The pro forma transaction accounting for the JDE Peet's acquisition included a delayed draw term loan of $3.6 billion, approximately $6 billion of senior unsecured notes, a $4 billion JV investment, and issuance of $4.5 billion of convertible preferred stock. source
• The JDE Peet’s acquisition closed on April 1, and its segment contribution was wholly incremental to Keurig Dr Pepper Inc. year over year. source
• Keurig Dr Pepper Inc. disclosed risk that completing the beverage and coffee portfolio separation within the anticipated timeframe, or at all, may not occur. source
• KDP's acquisition accounting remains preliminary: the company was still evaluating the fair value of definite-lived intangible assets, and any resulting change in fair value would directly affect amortization expense. source
• The JDE Peet’s acquisition pro forma accounting assumes acquired inventory fair value step-up will be recorded in cost of sales as the related inventory is expected to be sold within twelve months following closing. source
• Keurig Dr Pepper Inc. disclosed risk that JDE Peet’s integration may be more difficult, time-consuming, or costly than expected. source
• Keurig Dr Pepper Inc. disclosed that the separation could incur significant additional costs. source