KDP taps $7bn from Apollo & KKR to stabilise JDE Peet’s deal now.

Keurig Dr Pepper (KDP) unveiled a targeted capital solution on Oct. 27 that is intended to materially lower transaction risk for its proposed purchase of JDE Peet’s and to accelerate the path to a planned split into two independent, investment‑grade businesses. The centerpiece: a capital-efficient, strategic package totalling $7 billion co-led by affiliates of Apollo and KKR.

The financing package has two principal pieces. First, a binding term sheet for a $4 billion joint‑venture investment in a new K‑Cup® pod and single‑serve manufacturing platform — the Pod Manufacturing JV — in which KDP will retain controlling operating interest. KDP expects the all‑in cost of this capital to be roughly 7.3–7.4% over the next decade. Second, the deal includes a definitive agreement for a $3 billion convertible preferred stock investment in the combined business and in the eventual Beverage Co.

Key economics of the preferred instrument were disclosed: an initial conversion price of $37.25 per share (a 41% premium to the 20‑day VWAP through Oct. 24, 2025, and a 6% premium to the most recent close), and an initial preferred dividend of 4.75% with participation rights on an as‑converted basis subject to netting of common dividends. KDP also said the package reduces projected net leverage at acquisition close by roughly 1.0x, to an estimated ~4.6x, with management modelling roughly 10% adjusted EPS accretion in the first full year post‑close.

Management laid out an intended timetable and capital targets for separation. KDP is aiming for operational readiness to split into two public companies by end‑2026, with targeted net leverage ranges at separation of approximately 3.5–4.0x for Beverage Co. and 3.75–4.25x for Global Coffee Co. The company said it will continue to explore additional deleveraging levers including non‑core divestitures and other strategic capital actions.

Leadership and governance steps were announced alongside the financing. Tim Cofer will remain CEO through separation and is slated to lead Beverage Co. thereafter. The board will recruit a standalone CEO for Global Coffee Co.; previously announced plans for Sudhanshu Priyadarshi to take that role have been revised — he remains KDP’s CFO and President, International. The Company also plans to nominate Brian Driscoll to the board at the next annual meeting. In addition, Roger Johnson — appointed Chief Transformation and Supply Chain Officer — will run integration and separation planning, supply chain alignment and synergy capture.

Agreements remain subject to customary closing conditions. KDP expects closing in the first half of 2026 and will continue to update shareholders as milestones are met. The package aims to balance near‑term financial headroom with the structural changes required to create two focused companies in coffee and North American beverages.