Keurig Dr Pepper to buy Peet's Coffee owner in $18 billion deal

Keurig Dr Pepper said Monday it will buy Peet's Coffee owner JDE Peet's in a deal worth about $18 billion, with plans to split into two separate companies after the acquisition closes.

One of the two new businesses will focus on coffee, while the other will focus on beverages including Dr Pepper, Canada Dry, 7Up and energy drinks, the companies said in a statement.

The coffee business will have about $16 billion in combined sales and the beverage business about $11 billion.

"Through the complementary combination of Keurig and JDE Peet's, we are seizing an exceptional opportunity to create a global coffee giant," said Tim Cofer, Keurig Dr Pepper's CEO.

In addition to Peet's, Amsterdam-based JDE Peet's brands include L'OR, Jacobs, Douwe Egberts, Kenco, Pilao, OldTown, Super and Moccona.

Once the two companies are separated, Cofer will become CEO of the beverage business, which will be based in Frisco, Texas, and Keurig Dr Pepper CFO Sudhanshu Priyadarshi will lead the coffee business, which will be located in Burlington, Mass., with its international headquarters in Amsterdam.