BURLINGTON, Mass. and FRISCO, Tex., USA – Keurig Dr Pepper (KDP) announced yesterday that a subsidiary of JAB Holding Company s.a.r.l. (“JAB”) will sell an aggregate of 60,000,000 shares of KDP common stock through a proposed registered public offering. JAB has also granted the underwriter a 30-day option to purchase up to an additional 9,000,000 shares.
Following the completion of the offering, JAB will beneficially own approximately 16.5% of KDP’s outstanding common stock, or approximately 15.8% assuming full exercise of the underwriter’s option to purchase additional shares. The remaining shares beneficially owned by JAB will be subject to a 90-day lock-up agreement with the underwriter.
Additionally, to fill the vacancy on the KDP Board of Directors (the “Board”) left by JAB Partner Lubomira Rochet, who notified the Company of her immediate resignation, the Board has appointed Frank Engelen, Managing Partner and CFO of JAB, as a director.
Mr. Engelen will serve for an initial term expiring at the Company’s 2025 annual meeting of stockholders.
“Keurig Dr Pepper has long been JAB’s largest and most successful investment and will remain so following this transaction,” said Joachim Creus, JAB Managing Partner, Vice Chairman and CEO, in connection with the proposed secondary offering.
“We believe KDP has significant forward momentum, with key enablers including its refreshed leadership team, sharp strategy and disciplined capital allocation philosophy.
JAB’s demonstrated conviction in the resilience of the global coffee sector reinforces our positive view on KDP, and we look forward to participating in the value-creation ahead.
As KDP Board members, Frank and I will continue to support the Company’s vision of providing a beverage for every need, anytime, anywhere.”
Morgan Stanley & Co. LLC is acting as the underwriter for the proposed secondary offering.
