Keurig Dr Pepper expands its beverage portfolio
Core Nutrition, a producer of enhanced waters, is now part of the Keurig Dr Pepper family as the leading beverage company looks to bolster its emerging brands portfolio.
The company announced that it has entered into a definitive agreement to acquire Core Nutrition LLC at a value of $525 million. Core has been an allied brand with the company since 2016, with Keurig Dr Pepper currently managing approximately two-thirds of the brand's U.S. distribution.
"Core has been a valued and successful allied brand partner, and we are pleased that this on-trend beverage will become part of our owned KDP family of brands,” said Keurig Dr Pepper Chief Executive Officer Bob Gamgort. “Our sales and distribution capabilities have helped fuel significant growth for the Core portfolio. Through this transaction we intend to realize the full growth potential for the business."
The acquisition of Core Nutrition will be funded with the Keurig Dr Pepper’s common stock. The company expects the transaction to be neutral to Keurig Dr Pepper's adjusted diluted earnings per share in 2019.
Founded in 2015, the Core Nutrition portfolio includes Core Hydration, a premium, nutrient-enhanced bottled water, and Core Organic -- USDA-certified organic enhanced fruit hydration.