Keurig Dr Pepper sells Chobani stake and Pennsylvania factory for $925M
Keurig Dr Pepper (KDP) announced it will sell its full equity stake in Chobani back to the yogurt maker for $800 million, along with a manufacturing facility and warehouse in Allentown, Pennsylvania, for approximately $125 million. The total transaction is valued at $925 million before taxes. KDP plans to use the proceeds from the sale primarily to reduce debt as it prepares to split into two publicly traded companies: Beverage Co. and Global Coffee Co. As part of the deal, Chobani will take over operations at the Allentown facility, including its lease, equipment, and manufacturing processes. The company intends to retain most employees in production roles while those involved in delivery and customer service remain with KDP. Additionally, a co-manufacturing agreement allows Keurig Dr Pepper to continue producing certain products at the site for a defined period after closing. Chobani plans to invest $1.2 billion over five years into the Allentown facility, aiming to create more than 900 new jobs in Pennsylvania. The transactions are expected to close by the end of September.
Tickers: $KDP
Topics: asset sale Chobani corporate restructuring Keurig Dr Pepper