Keurig Dr Pepper (NASDAQ:KDP) said on Tuesday that it will sell its investment in Chobani back to the yogurt maker for a total of $925 million as the beverage company continues to reshape its portfolio following its acquisition of JDE Peet’s.
Under the transaction, Keurig Dr Pepper will sell its entire equity interest in Chobani for $800 million.
The company will separately sell a manufacturing facility and warehouse in Allentown, Pennsylvania, to Chobani for $125 million.
Keurig Dr Pepper reshapes portfolio after JDE Peet’s acquisition
The transaction comes as Keurig Dr Pepper reorganises its operations following its $18 billion acquisition of Dutch coffee and tea company JDE Peet’s in April.
Keurig Dr Pepper is also preparing to separate its coffee and beverage businesses into two publicly traded U.S. companies.
The planned Chobani transaction forms part of the company’s broader portfolio changes following the JDE Peet’s acquisition.
Chobani plans $1.2 billion investment
Chobani said it intends to invest approximately $1.2 billion in the Allentown facility over the next five years.
The yogurt maker plans to use the investment as part of efforts to produce milk containing more protein and less sugar than traditional milk.
The planned expenditure represents Chobani’s stated investment intention and remains subject to its future implementation.
Keurig Dr Pepper maintains annual forecasts
The transaction follows Keurig Dr Pepper’s second-quarter results last month, when the company maintained its full-year forecasts.
Demand for its soda and energy drink brands contributed to quarterly sales and profit that exceeded analyst estimates.
The $925 million transaction will result in Keurig Dr Pepper disposing of both its Chobani equity investment and the associated Allentown property as the company continues preparations for the planned separation of its coffee and beverage operations.
Keurig Dr Pepper stock price
