Keurig Dr Pepper secures $7B from Apollo and KKR to fund its $18B JDE Peet’s acquisition

Keurig Dr Pepper (KDP) secured $7,000,000,000 in convertible preferred equity from Apollo and KKR to help fund its planned $18,000,000,000 acquisition of JDE Peet’s, and lifted its 2025 net-sales outlook to high-single-digit growth, sending the stock up about 6% pre-market.

KDP reported Q3 net sales of $4.31 billion versus $4.15 billion (LSEG consensus), supporting the guidance increase. Of the new capital, $4 billion is slated for a joint venture focused on K-Cup pods and single-serve manufacturing tied to the post-deal footprint. Management continues to target a separation into “Beverage Co” and “Global Coffee Co” by end-2026, contingent on regulatory and closing conditions.

The financing underscores deep private capital appetite for large, structured deals backing portfolio reshapes at investment-grade consumer names, even with higher base rates. Bloomberg likewise notes KDP is raising $7B from Apollo and KKR to ease investor concerns over deal funding as the JDE Peet’s transaction advances.

With $7B locked, a guidance upgrade, and a clear plan to split into two focused companies, KDP is de-risking execution on its $18B coffee pivot while preserving balance-sheet flexibility. Expect more preferred-equity and JV structures in consumer M&A where top-line beats ($4.31B vs $4.15B) help finance transformation without over-levering the core.