Keurig Dr Pepper Sells Stake in Chobani for $925 Million to Support Restructuring
Keurig Dr Pepper Inc. (NASDAQ:KDP) is selling its entire equity stake in yogurt maker Chobani and transferring a Pennsylvania manufacturing facility back to the company, generating approximately $925 million in pre-tax proceeds. The move follows KDP's recent acquisition of JDE Peet’s for $18 billion and supports efforts to reduce debt ahead of splitting into two independent publicly traded companies focused on coffee and beverages. The sale provides financial flexibility as management prepares the separation, with a focus on strengthening balance sheets through deleveraging. Chobani plans significant investment in the Allentown facility—$1.2 billion over five years—to develop low-sugar, high-protein milk products that align more closely with its strategy than KDP’s evolving priorities. Despite selling their stake, KDP will maintain a commercial relationship with Chobani for distribution and co-manufacturing agreements during the transition period.
Tickers: $KDP
Topics: debt_reduction M&A restructuring