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Keurig Dr Pepper Strikes $18 Billion Deal for JDE Peet’s
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Good morning, CFOs. Keurig Dr Pepper is set to buy European coffee company JDE Peet’s; labor market has moved front and center for the Federal Reserve; plus, how GOP lawmakers are distancing themselves from Trump’s tariffs.
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A Peet’s Coffee, as seen in downtown San Francisco, in August 2023. PHOTO: POPPY LYNCH FOR WSJ
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Keurig Dr Pepper has struck a deal to buy Peet’s Coffee owner JDE Peet’s for $18 billion, a prelude to spinning off its coffee brands into a separate public company, report my colleagues Laura Cooper and Ben Dummett.
The deal is transformational for Keurig Dr Pepper and would eventually unwind the 2018 transaction that put coffee maker Keurig and beverage company Dr Pepper under the same corporate roof. At that time, the transaction was the world’s biggest in nonalcoholic drinks.
Keurig Dr Pepper said it would pay JDE Peet’s shareholders 31.85 euros (around $37) a share in cash, a 33% premium to the average price over roughly the last three months. JDE Peet’s, based in Amsterdam, has a market value of around $15 billion. Keurig Dr Pepper’s is around $50 billion.
After that deal closes, Keurig Dr Pepper plans to separate into two companies listed in the U.S., one focused on coffee and the other on refreshment beverages including Dr Pepper, 7UP, Snapple and energy drinks such as Bloom and Ghost. The global coffee company would have roughly $16 billion in annual revenue, while the beverage company would have some $11 billion in revenue.
The Wall Street Journal earlier reported that Keurig Dr Pepper and JDE Peet’s were close to sealing a deal and about the division’s eventual separation.
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Content from our sponsor: Deloitte
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Pacific Life’s CFO on Being a Business Partner and Transformation Leader
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Vibhu Sharma, CFO of Pacific Life, provides insights into his approach for building a team of business-minded finance leaders and advice for implementing transformations. Read More
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Monday
Earnings: Semtech
The Census Bureau will release its monthly update on new residential sales for July.
Tuesday
Earnings: Bank of Montreal, Bank of Nova Scotia, Box, MongoDB, Okta and PVH.
The Census Bureau releases the durable goods report for July.
The Conference Board releases its August consumer confidence survey.
Wednesday
Earnings: Abercrombie & Fitch, Agilent Technologies, Chewy, CrowdStrike, Five Below, Foot Locker, HP, J.M. Smucker, Kohl’s, NetApp, Nvidia, Snowflake, Trip.com and Urban Outfitters
Thursday
Earnings: Affirm, Autodesk, Best Buy, Burlington Stores, Brown-Forman, Dick’s Sporting Goods, Dollar General, Gap, Hormel Foods, Marvell, SentinelOne and Ulta,
The Bureau of Economic Analysis releases its second preliminary estimate of second-quarter gross domestic product.
The Department of Labor releases initial jobless claims for the week ended Aug. 23.
The National Association of Realtors releases its pending home sales index for July.
Friday
Earnings: Alibaba
The BEA releases the personal consumption expenditures price index for July.
The University of Michigan releases its final estimate for its August Index of Consumer Sentiment.
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What Else Matters to CFOs
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The pace of hiring has dropped. PHOTO: MIKAELA MARTIN FOR WSJ
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The labor market has moved front and center for the Federal Reserve, highlighting its fragility and risk to the economy.
The good news is that unemployment remains low, and employers haven’t been all that interested in laying people off. The bad news is that companies haven’t been all that interested in hiring, either.
This precarious situation means even a relatively small increase in layoffs could lead the economy to start shedding jobs—a process that can be difficult to reverse once it starts.
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The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.
Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.
You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.
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