JAB to Remain Long-Term Anchor
Shareholder
BURLINGTON, Mass. and FRISCO, Texas, Feb. 29,
2024 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ:
KDP) today announced that a subsidiary of JAB Holding Company
s.a.r.l. ("JAB") will sell an aggregate of 86,956,522 shares
through a secondary offering. JAB has also granted an option
to the underwriter to purchase up to an additional 13,043,478
shares for a period of 30 days following the date of this
offering.
KDP has indicated its intent to repurchase an aggregate of 35
million shares in this offering (the "Repurchase") at the per share
price to be paid by the underwriter in the offering. The
Repurchase is being effected under its previously announced
$4 billion repurchase authorization
of which approximately $1.8 billion
will remain outstanding following the offering.
As part of the offering, certain directors and officers of KDP
have indicated an interest to purchase KDP shares.
Following the completion of the offering, assuming full exercise
of the underwriter's option to purchase additional shares, JAB will
beneficially own approximately 21% of KDP's outstanding common
stock, giving effect to the Repurchase, bringing KDP's public float
to approximately 79%.
Joachim Creus, CEO of JAB
stated: "The proceeds from our sale of KDP shares allow us to
maintain our leverage target in line with our financial policies,
as we continue to build out our investment portfolio. KDP
will continue to be one of our most important investments and we
expect to continue to be a long-term anchor shareholder in KDP, at
or above the 20% ownership level."
Under the terms of the transaction, the remaining shares
beneficially owned by JAB will be subject to a 180 day lock-up
agreement with the underwriter.
Morgan Stanley is acting as the underwriter for the proposed
secondary offering.
The offering will be made only by means of an effective
registration statement and a prospectus. The Company has previously
filed with the U.S. Securities and Exchange Commission (the "SEC")
a registration statement (including a prospectus) on Form S-3 (File
No. 333-266989) and a prospectus supplement, each dated
August 19, 2022, as well as a
preliminary prospectus supplement for the offering to which this
communication relates. Before you invest, you should read the
prospectus in that registration statement, the accompanying
prospectus supplements and other documents the issuer has filed
with the SEC for more complete information about the issuer and
this offering. These documents can be accessed through the SEC's
website at www.sec.gov or by contacting Morgan Stanley & Co.
LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor,
New York, NY 10014. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities
in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state or jurisdiction.
Investor Contacts:
Jane Gelfand
T: 888-340-5287
jane.gelfand@kdrp.com
Chethan Mallela
T: 888-340-5287
chethan.mallela@kdrp.com
Media Contact:
Katie Gilroy
T: 781-418-3345
katie.gilroy@kdrp.com
About Keurig Dr Pepper
Keurig Dr Pepper (KDP) is a leading beverage company
in North America, with annual revenue of more than $14
billion and approximately 28,000 employees. KDP holds
leadership positions in liquid refreshment beverages, including
soft drinks, specialty coffee and tea, water, juice and juice
drinks and mixers, and markets the #1 single serve coffee brewing
system in the U.S. and Canada. The Company's portfolio of more
than 125 owned, licensed and partner brands is designed to satisfy
virtually any consumer need, any time, and includes
Keurig®, Dr Pepper®, Canada Dry®,
Clamato®, CORE®, Green Mountain Coffee
Roasters®, Mott's®, Snapple®, and
The Original Donut Shop®. Through its powerful sales and
distribution network, KDP can deliver its portfolio of hot and cold
beverages to nearly every point of purchase for consumers. The
Company's Drink Well. Do Good. corporate responsibility platform is
focused on the greatest opportunities for impact in the
environment, its supply chain, the health and well-being of
consumers and with its people and communities.
FORWARD LOOKING STATEMENTS
Certain statements contained herein are "forward-looking
statements" within the meaning of applicable securities laws and
regulations. These forward-looking statements can generally be
identified by the use of words such as "outlook," "guidance,"
"anticipate," "expect," "believe," "could," "estimate," "feel,"
"forecast," "intend," "may," "plan," "potential," "project,"
"should," "target," "will," "would," and similar words.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. These statements are based on
the current expectations of our management, are not predictions of
actual performance, and actual results may differ materially.
Forward-looking statements are subject to a number of risks and
uncertainties, including the factors disclosed in our Annual Report
on Form 10-K, the prospectus supplements and subsequent filings
with the SEC. We are under no obligation to update, modify or
withdraw any forward-looking statements, except as required by
applicable law.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/keurig-dr-pepper-announces-sale-of-up-to-100-million-shares-of-common-stock-by-jab-and-repurchase-of-35-million-shares-by-kdp-302076469.html
SOURCE Keurig Dr Pepper