- Dr Pepper Snapple (DPS +24.8%) shareholders will receive one share of Keurig Dr Pepper and $103.75 in cash per share as part of today's buyout.
- In post-deal presentation slides, Dr Pepper management indicates that the combined company will meet the consumer need for an "afternoon energy boost" through various formats and the integration of the existing retail channels in place (7-Eleven, Dollar General, CVS, Amazon (NASDAQ:AMZN), Best Buy, Kohl's, Target, Wal-Mart (NYSE:WMT), etc.).
- As far as numbers, a one-cost of $700M in deal expenses is expected to be quickly overshadowed by $600M in annual synergies (procurement savings, purchasing scale, warehouse integration, etc.)
- Not exactly a bit player in the deal Mondelez International (MDLZ +0.3%) is catching attention from analysts. RBC Capital sticks with an Outperform rating on Mondelez after factoring in the company's 13% to 14% stake in Keurig Dr Pepper whihc is estimated to be worth ~$3B.
- Previously: Keurig Dr Pepper to be a beverage beast (Jan. 29)
- Now read: Dr Pepper Snapple (DPS) Acquired By Keurig Dr Pepper - Slideshow
Original article