Dr Pepper Snapple Group, the nation’s third-largest soft drink maker, is now officially part of the Keurig family.
The new company, Keurig Dr Pepper, said Monday it had successfully completed the merger of Keurig Green Mountain and Dr Pepper Snapple Group.
The transaction creates the seventh-largest U.S. food and beverage company with annual revenue of about $11 billion.
The company will begin trading Tuesday on the New York Stock Exchange under the ticker symbol KDP and “will maintain dual headquarters in Burlington, Mass., and Plano, Texas.”
And once again, a Texas-born brand is owned by an out-of-towner. The company was previously part of Cadbury Schweppes.
In Dr Pepper, Keurig gains a beverage maker with a substantial distribution network. Dr Pepper gains more access to the at-home market.
“The combination of these two great companies creates the scale, portfolio and selling and distribution capabilities to compete differently in the beverage industry,” Keurig Dr Pepper Chief Executive Bob Gamgort said in a statement.
“With a large stable of iconic brands and the leading single-serve coffee brewing system on the market, KDP has the ability to satisfy any beverage need or consumption occasion … and the capability to get our brands to consumers virtually anytime and anywhere they purchase beverages. I am honored to lead this great team and excited that together we will challenge this industry in a new way.”
Larry Young, chief executive of Dr Pepper Snapple, will retire from leadership of the company and join the Keurig Dr Pepper board of directors.
Under the terms of the merger agreement, Dr Pepper Snapple shareholders will receive a special cash dividend of $103.75 per share, payable in U.S. dollars, on Tuesday, to shareholders of record on July 6.