Keurig Dr Pepper Announces $925M Chobani Stake Redemption and Facility Sale

Summary of Event

On August 28, 2026, Keurig Dr Pepper Inc. (NASDAQ: KDP) entered into definitive agreements with Chobani (FHU US Holdings, LLC and affiliates) covering two major transactions totaling $925 million in aggregate pre-tax consideration:

1. Equity Redemption ($800M): Redemption of all of KDP's indirect equity interest in Chobani for:
   • $400 million in cash payable at closing.
   • $400 million promissory note issued by Chobani maturing on December 26, 2026.
2. Asset & Facility Sale ($125M): Sale of manufacturing and warehouse leasehold interests and associated assets in Allentown, Pennsylvania to Chobani.

Strategic Highlights & Commercial Relationship

• Deleveraging Focus: KDP intends to apply net proceeds directly toward debt reduction as it prepares its dual future operating units, Beverage Co. and Global Coffee Co., for long-term growth.
• Commercial Continuity: The companies have renewed and broadened their commercial distribution agreement. KDP will continue distributing La Colombe ready-to-drink (RTD) lattes and other Chobani beverages via its direct-store-delivery (DSD) network, while maintaining long-term licensing and distribution of La Colombe K-Cup pods in the U.S. and Canada.
• Co-Manufacturing: Chobani will manufacture certain KDP products at the Allentown site under a transition co-manufacturing agreement.
• Timing: Both transactions are slated to close in the third quarter of 2026, subject to customary closing conditions.