Waterbury-based Keurig Green Mountain announced Monday that it plans to merge with Dr Pepper Snapple to form a new beverage company — Keurig Dr Pepper. The deal is expected to close in the second quarter of 2018.
The deal would bring the brands of Green Mountain Coffee Roasters, Dr Pepper, 7UP and Snapple under one roof. Keurig will pay $18.7 billion in cash to merge with Dr Pepper Snapple, according to Bloomberg.
In a press release, Keurig said Bob Gamgort, the current CEO of Keurig, will be the CEO of the new combined company, and Dr Pepper Snapple President and CEO Larry Young will take a role on the KDP board of directors.
“The combination of Dr Pepper Snapple and Keurig will create a new scale beverage company which addresses today’s consumer needs, with a powerful platform of consumer brands and an unparalleled distribution capability to reach virtually every consumer, everywhere,” Gamgort said in a statement.
Katie Gilroy, senior manager of communications at Keurig Green Mountain, said the current shareholders of Dr Pepper Snapple need to approve the merger.
The press release also outlined that under the terms of the merger, "Dr Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and retain 13% of the combined company."
Gilroy wouldn’t comment when asked if the merger would cause any staffing or operation changes at the company’s locations in Vermont.
“The only message I have specific to geography is that we will continue to operate out of our current locations, and Vermont is one of those locations where we have some offices and about 1,200 employees total across the state,” she said.
Last June, Keurig cut 130 jobs across the company, including 40 in Vermont.
