Keurig Green Mountain intends to purchase the beverage company Dr Pepper Snapple, the coffee pod-maker announced Monday. If the $18.7 billion purchase is approved by Dr Pepper Snapple shareholders, the new company — Keurig Dr Pepper — would total approximately $11 billion in annual revenue, The Associated Press reports.
The proposed merger would allow Dr Pepper Snapple shareholders to maintain a 13 percent ownership claim in Keurig Dr Pepper, as well as receive a $103.75 per-share payout on their stocks. In light of the news, Dr Pepper Snapple stock received a nearly 40 percent bump in advance of Monday morning trading.
In a statement, Keurig CEO Bob Gamgort said the merger "unlocks the opportunity to combine hot and cold beverages." The New York Times predicts that Keurig's influence may lead to "Dr Pepper Snapple's brands eventually producing pods to let consumers produce their soft drinks at home."