BURLINGTON, Mass. and FRISCO, Texas - Keurig Dr Pepper Inc. (NASDAQ: NASDAQ:KDP), a leading beverage company, announced today that JAB Holding Company s.a.r.l. ("JAB") plans to sell 86,956,522 shares of KDP common stock through a secondary offering. JAB, a long-term anchor shareholder in KDP, has also granted the underwriter an option to purchase up to an additional 13,043,478 shares, which could total up to 100 million shares if the option is fully exercised.
Concurrently, KDP has expressed its intent to repurchase 35 million shares at the same price paid by the underwriter in the secondary offering. This repurchase is part of KDP's ongoing $4 billion repurchase authorization, and approximately $1.8 billion will remain after this transaction.
The sale and subsequent repurchase will alter JAB's beneficial ownership in KDP. Assuming the underwriter's option is fully exercised and the repurchase is completed, JAB's stake in KDP would decrease to approximately 21% of the company's outstanding common stock, increasing KDP's public float to roughly 79%.
Joachim Creus, CEO of JAB, commented on the transaction, stating that the proceeds from the sale would help JAB maintain its leverage target while continuing to build its investment portfolio. Creus reaffirmed JAB's commitment to remain a significant long-term shareholder in KDP, maintaining an ownership level at or above 20%.
Furthermore, certain KDP directors and officers have indicated an interest in purchasing shares in conjunction with the offering. The remaining shares held by JAB after the offering will be under a 180-day lock-up agreement with the underwriter, Morgan Stanley (NYSE:MS), who is managing the proposed secondary offering.
Investors and potential investors are advised that the offering will be made only by means of an effective registration statement and a prospectus, which have been filed with the U.S. Securities and Exchange Commission.
Keurig Dr Pepper is a major player in the North American beverage market, with a portfolio that includes a variety of soft drinks, specialty coffee and tea, and other beverages. The company's commitment to corporate responsibility is highlighted through its Drink Well. Do Good. platform, focusing on environmental impact, supply chain integrity, consumer health, and community engagement.
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