By Elias Schisgall
Keurig Dr Pepper agreed to raise an additional $1.5 billion as part of a deal with private equity firms to separate its beverage and coffee segments into two public companies.
KKR and Apollo Global Management agreed to invest $3 billion in the Keurig Dr Pepper's beverage division. That investment will now total $4.5 billion, the company said Monday, with additional participation from other lenders including T. Rowe Price Investment Management.
With the new capital, Keurig Dr Pepper no longer intends to consider a partial initial public offering of the beverage company, it said.
The company also said its acquisition of Peet's Coffee owner JDE Peet's, originally disclosed in August, is expected to close in early April with expected combined net leverage of about 4.5x1.
KKR and Apollo, with support from Goldman Sachs, said in October that they would commit $4 billion to a partnership with the coffee business and a joint venture for global manufacturing of its pod business.
Keurig Dr Pepper said Monday that it had finalized definitive agreements for the $4 billion investment, which are substantially consistent with the terms announced in October.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
02-23-26 1753ET
