WASHINGTON (dpa-AFX) - Keurig Dr Pepper Inc. (KDP) Thursday said it has agreed to acquire lifestyle sports nutrition business, GHOST Lifestyle LLC and GHOST Beverages LLC.
As per the deal, KDP will make an initial cash investment of about $990 million in GHOST for a 60 percent stake. This will be followed by the acquisition of the remaining 40 percent stake in 2028, for a value which will reflect GHOST's 2027 financial performance.
Keurig said GHOST's net sales have more than quadrupled over the past three years.
Tim Cofer, KDP Chief Executive Officer, said, 'GHOST is a differentiated brand with significant growth potential, and we are excited to partner with its founders to take the business to the next level. This acquisition strengthens our position in the attractive energy drink category, accelerating our portfolio evolution toward consumer-preferred, growth-accretive spaces through a disciplined deal structure.'
GHOST will operate as part of KDP's U.S. Refreshment Beverages segment, and will continue to be led by its co-founders, Dan Lourenco and Ryan Hughes.
KDP also plans to invest up to $250 million, starting mid-2025, to transition GHOST Energy's existing distribution agreements ahead of beginning to sell the brand through the company's direct store delivery network.
The deal, initial step of which is estimated to close in late 2024 or early 2025, is expected to add neutrally to modestly to adjusted EPS starting 2025.
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