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CompaniesKeurig Dr Pepper IncApollo Global Management IncJDE Peets NV Oct 27 (Reuters) - Keurig Dr Pepper (KDP.O), opens new tab lifted its forecast for annual sales on Monday and said it had raised about $7 billion to finance its purchase of Dutch coffee giant JDE Peet's (JDEP.AS), opens new tab, allaying some investor fears about mounting debt. Shares of the beverage maker surged nearly 9% in early trading on Monday following the upbeat forecast and investment by financial giants KKR (KKR.N), opens new tab and Apollo Global (APO.N), opens new tab. Advertisement · Scroll to continue Keurig had announced the acquisition of JDE Peet's for about $18 billion in August, along with plans to split the merged entity's coffee operations and other beverage businesses into two publicly traded companies. Of the $7 billion investment, $4 billion will go into a new K-Cup pod and single-serve manufacturing joint venture, Keurig said. KKR and Apollo will also invest the remaining amount in the company and the eventual company with the beverage business through convertible preferred stock. Investors have raised concerns over the deal as it comes amid record high prices for global coffee, driven by droughts in top producers Brazil and Vietnam and following U.S. President Donald Trump's erratic tariff policies. Advertisement · Scroll to continue "We think this release will help ease investor concerns surrounding the purchase and KDP's plan," CFRA Research analyst Garrett Nelson said. Shares of the company have fallen about 23% since the deal announcement and earlier this month, activist investor Starboard Value also built a stake in Keurig Dr Pepper after the acquisition was disliked by investors, Reuters reported. "Since the (deal) announcement, we have also carefully considered shareholder feedback and are responding with decisive actions, including new strategic investments to strengthen our balance sheet and a refreshed approach to leadership structure," Keurig Dr Pepper CEO Tim Cofer said. Keurig's board has also started a search for the future CEO of global coffee entity as CFO Sudhanshu Priyadarshi will no longer assume this future role, as previously disclosed, the company said. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2122790980 About ConnatixV2122790980 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE The company now expects 2025 full-year net sales to grow in a high-single-digit, up from its earlier mid-single-digit range. Third-quarter sales of $4.31 billion beat analysts' estimates of $4.15 billion, according to data compiled by LSEG. Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shailesh Kuber and Leroy Leo Purchase Licensing Rights
