Business

Keurig buys Dr. Pepper Snapple, creating a beverage giant

epa05058335 The Keurig Green Mountain offices in Burlington, Massachusetts, USA 07 December 2015. Keurig Green Mountain, Inc. ('Keurig Green Mountain') (NASDAQ:GMCR), a personal beverage system company, and JAB Holding Company ('JAB') on 07 Decemberr 2015 announced that the companies have entered into a definitive merger agreement under which a JAB-led investor group will acquire Keurig Green Mountain for 92.00 US dollars per share in cash, or a total equity value of approximately 13.9 billion US dollars. The agreement, which has been unanimously approved by Keurig Green Mountain's Board of Directors, represents a premium of approximately 77.9 per cent over Keurig Green Mountain's closing stock price on 04 December 2015. EPA/CJ GUNTHER CJ Gunther / EPA

PLANO, Texas (AP) — Keurig is buying Dr. Pepper Snapple Group Inc., creating a beverage giant with about $11 billion in annual sales.

The companies, both the result of previous mergers, will bring under one tent global brands like Dr Pepper, 7UP, Snapple, A&W, Mott’s, Sunkist and Keurig’s single-serve coffee makers.

Keurig Green Mountain Inc. said Monday that Dr. Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and keep 13 percent of the combined company.

Shares of Dr. Pepper Snapple soared more than 36 percent before the opening bell Monday.

Keurig CEO Bob Gamgort will lead the new company, called Keurig Dr. Pepper.

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The deal is expected to close in the second quarter. It still needs approval from Dr. Pepper Snapple shareholders.