Keurig Dr Pepper to Acquire Core For $525 Mln

Keurig Dr Pepper (KDP), a coffee and beverage company, said pre-market Thursday that it has agreed to acquire Core Nutrition at a value of $525 million, or $435 million net of anticipated tax benefits.

Founded in 2015, the Core Nutrition portfolio includes Core Hydration, a nutrient-enhanced bottled water, and Core Organic, USDA-certified organic enhanced fruit hydration, both currently distributed by Keurig.

The acquisition of Core Nutrition will be funded with Keurig common stock, net of Keurig’s current equity investment and certain other contractual adjustments.

The company said it expects the deal to be neutral to its adjusted diluted earnings per share in 2019 and accretive thereafter.

Core has been a Keurig allied brand since 2016, with Keurig currently managing two-thirds of the brand’s US distribution.

Net sales of all Core beverages have grown at an average annualized rate of 115% over the past three years, with current retail sales across both measured and unmeasured channels estimated in excess of $200 million in the latest 52 weeks.

The deal is expected to close later this year.

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