BURLINGTON, Mass. and PLANO, Texas, U.S. – Keurig Dr Pepper (NYSE: KDP) yesterday announced that JAB Holdings B.V. (“JAB”) has indicated its intention for its majority-owned Maple Holdings B.V. subsidiary (“Maple”) to convert a portion of the interest of its minority partners into directly held shares of KDP stock.
The minority investors involved in the transaction, which include affiliates of BDT Capital Partners (“BDT”), affiliates of Quadrant Capital Advisors (“Quadrant”), and the significant majority of investors in the JCF Consumer Fund (“JCF”), have all expressed their intentions to remain long-term KDP shareholders.
KDP Chairman and CEO Bob Gamgort said, “JAB and its minority investors have been and continue to be outstanding partners since the take-private transaction of the former Keurig Green Mountain was announced in 2015. Their ongoing support of Keurig Dr Pepper is much appreciated as we proceed on our path to becoming a widely-held company.”
To affect the equity distribution, Maple intends to distribute approximately 76 million shares of KDP stock that Maple currently holds, representing approximately 5.4% of the outstanding common stock of KDP. Affiliates of both BDT and Quadrant, as well as JCF investors, the latter of which is largely comprised of sovereign wealth funds, university endowments and family offices, will be subject to a six-month lock-up provision on the distributed shares.
BDT Capital Partners Chairman and CEO Byron Trott stated, “Under the strong leadership of Bob Gamgort and his team, KDP has delivered outstanding returns and we are confident in the Company’s strategy and direction. We remain a committed long-term shareholder and plan to participate in the continued value creation that we believe lies ahead.”
Quadrant Managing Director and Chief Investment Officer, Christopher Evison, added, “As long-term shareholders of great businesses, we are extremely pleased with KDP’s strong operating performance and our investment returns to date. We continue to be confident in the Company’s outlook and excellent management team, and plan to remain a long-term shareholder.”
Following the distribution and lock-up period, JAB and Maple will collectively own 44% of KDP, Mondelez International, Inc. will continue to own 12% and the public float will increase to 44%, including shares held directly by the minority partners.
Maple and its affiliates intend to make the required filings with the SEC, including an amendment to Maple’s existing Schedule 13D, upon the completion of the distribution.
