Keurig Dr Pepper to Acquire Disruptive Energy Drink Business GHOST
Keurig Dr Pepper (NASDAQ: KDP) has announced a definitive agreement to acquire GHOST, a lifestyle sports nutrition business known for its fast-growing energy drink brand. The acquisition will occur in two stages: KDP will initially purchase a 60% stake for approximately $990 million, followed by the remaining 40% stake in 2028. GHOST's net sales have more than quadrupled over the past three years, making it one of the fastest-growing brands in the energy category. The initial transaction is expected to close in late 2024 or early 2025, with GHOST's co-founders continuing to lead the business as part of KDP's U.S. Refreshment Beverages segment. KDP plans to invest up to $250 million starting mid-2025 to transition GHOST Energy's distribution to its direct store delivery network.
Keurig Dr Pepper (NASDAQ: KDP) ha annunciato un accordo definitivo per acquisire GHOST, un'azienda di nutrizione sportiva lifestyle nota per il suo marchio di bevande energetiche in rapida crescita. L'acquisizione avverrà in due fasi: KDP acquisterà inizialmente una parte del 60% per circa 990 milioni di dollari, seguita dal restante 40% nel 2028. Le vendite nette di GHOST sono più che quadruplicate negli ultimi tre anni, rendendola uno dei marchi a più rapida crescita nella categoria energetica. La transazione iniziale dovrebbe chiudersi entro la fine del 2024 o all'inizio del 2025, con i cofondatori di GHOST che continueranno a guidare l'azienda come parte del segmento Bevande Rinfrescanti di KDP negli Stati Uniti. KDP prevede di investire fino a 250 milioni di dollari a partire dalla metà del 2025 per modificare la distribuzione di GHOST Energy verso la sua rete di consegna diretta ai negozi.
Keurig Dr Pepper (NASDAQ: KDP) ha anunciado un acuerdo definitivo para adquirir GHOST, un negocio de nutrición deportiva lifestyle conocido por su marca de bebidas energéticas de rápido crecimiento. La adquisición se realizará en dos etapas: KDP comprará inicialmente una participación del 60% por aproximadamente 990 millones de dólares, seguida de la participación del 40% restante en 2028. Las ventas netas de GHOST se han cuadruplicado en los últimos tres años, convirtiéndola en una de las marcas de más rápido crecimiento en la categoría de energéticos. Se espera que la transacción inicial se cierre a finales de 2024 o principios de 2025, con los cofundadores de GHOST continuando al mando del negocio como parte del segmento de Bebidas Refrescantes de KDP en EE. UU. KDP planea invertir hasta 250 millones de dólares a partir de mediados de 2025 para cambiar la distribución de GHOST Energy a su red de entrega directa a las tiendas.
큐리그 드링크 페퍼 (NASDAQ: KDP)는 빠르게 성장하는 에너지 음료 브랜드로 알려진 라이프스타일 스포츠 영양 사업인 GHOST를 인수하기 위한 최종 계약을 발표했습니다. 인수는 두 단계로 진행됩니다: KDP는 약 9억 9천만 달러에 60% 지분을 먼저 구매하고, 2028년에 나머지 40% 지분을 인수할 예정입니다. GHOST의 순매출은 지난 3년 동안 4배 이상 증가하여 에너지 카테고리에서 가장 빠르게 성장하는 브랜드 중 하나가 되었습니다. 초기 거래는 2024년 말 또는 2025년 초에 마무리될 것으로 예상되며, GHOST의 공동 설립자들은 KDP의 미국 리프레시먼트 음료 사업의 일환으로 비즈니스를 계속 이끌 예정입니다. KDP는 2025년 중반부터 GHOST 에너지의 유통을 직접 매장 배달 네트워크로 전환하기 위해 최대 2억 5천만 달러를 투자할 계획입니다.
Keurig Dr Pepper (NASDAQ: KDP) a annoncé un accord définitif pour acquérir GHOST, une entreprise de nutrition sportive lifestyle connue pour sa marque de boissons énergétiques en forte croissance. L'acquisition se fera en deux étapes : KDP achètera initialement une participation de 60% pour environ 990 millions de dollars, suivie de la participation de 40% restante en 2028. Le chiffre d'affaires net de GHOST a plus que quadruplé au cours des trois dernières années, en faisant l'une des marques à la croissance la plus rapide dans la catégorie énergétique. La transaction initiale devrait être finalisée fin 2024 ou début 2025, avec les cofondateurs de GHOST continuant de diriger l'entreprise dans le cadre du secteur des boissons rafraîchissantes de KDP aux États-Unis. KDP prévoit d'investir jusqu'à 250 millions de dollars à partir de la mi-2025 pour transformer la distribution de GHOST Energy dans son réseau de livraison directe aux magasins.
Keurig Dr Pepper (NASDAQ: KDP) hat eine verbindliche Vereinbarung zur Übernahme von GHOST, einem Lifestyle-Sporternährungsunternehmen, das für seine schnell wachsende Energydrink-Marke bekannt ist, bekannt gegeben. Die Übernahme erfolgt in zwei Phasen: KDP wird zunächst einen 60% Anteil für etwa 990 Millionen US-Dollar erwerben, gefolgt von den verbleibenden 40% Anteil im Jahr 2028. Der Nettoumsatz von GHOST hat sich in den letzten drei Jahren mehr als vervierfacht und macht es zu einer der am schnellsten wachsenden Marken in der Energiekategorie. Der erste Abschluss der Transaktion wird für Ende 2024 oder Anfang 2025 erwartet, wobei die Mitbegründer von GHOST das Unternehmen weiterhin in KDPs US-Erfrischungsgetränkesegment leiten werden. KDP plant, ab Mitte 2025 bis zu 250 Millionen US-Dollar zu investieren, um die Distribution von GHOST Energy in sein Direktliefernetz für Geschäfte umzuwandeln.
- Initial acquisition cost represents 3x net revenue multiple on projected 2024 basis
- Transaction expected to be neutral to modestly accretive to adjusted EPS starting in 2025
- GHOST's net sales have quadrupled over past three years
- Strengthens KDP's position in the growing energy drink category
- Tax benefits with net present value of approximately $140 million
- Significant initial cash investment of $990 million required
- Additional investment of up to $250 million needed for distribution transition
- Future payment required in 2028 for remaining 40% stake
Insights
This strategic acquisition marks a significant move for KDP into the high-growth energy drink market. The
The deal structure is notably disciplined: the initial controlling stake followed by a performance-based acquisition of remaining shares in 2028 aligns incentives and reduces upfront capital requirements. The additional
The transaction's neutral to modest EPS accretion by 2025, combined with
GHOST's rapid growth trajectory and unique brand positioning in the premium energy drink segment represents a strategic fit for KDP's portfolio evolution. The brand's success in attracting younger consumers through distinctive marketing and innovative flavors addresses a critical gap in KDP's current offerings.
The energy drink category continues showing robust growth potential and this acquisition gives KDP a stronger competitive position against category leaders. GHOST's established presence in supplements and potential for cross-category expansion provides additional growth vectors beyond traditional energy drinks.
The retention of GHOST's founders and existing management team should help maintain brand authenticity while leveraging KDP's distribution capabilities and resources for accelerated expansion.
Addition of fast-growing brand accelerates KDP's portfolio evolution towards consumer-preferred spaces
Disciplined transaction creates win-win alignment between GHOST and KDP
Under the terms of the agreement, KDP will initially purchase a
The proposed transaction will substantially enhance KDP's presence in the energy drink category, extending its reach to new consumers. KDP's energy portfolio will now include multiple, powerful brands spanning lifestyle, performance, and other major occasions in the category. In addition to ready-to-drink energy, GHOST also has a presence in supplements and emerging positions in other liquid refreshment beverages.
Commenting on the announcement, Tim Cofer, KDP Chief Executive Officer, stated, "GHOST is a differentiated brand with significant growth potential, and we are excited to partner with its founders to take the business to the next level. This acquisition strengthens our position in the attractive energy drink category, accelerating our portfolio evolution toward consumer-preferred, growth-accretive spaces through a disciplined deal structure."
Cofer continued, "The energy category is poised for continued long-term growth, which KDP expects to increasingly capture through our platform-based approach. KDP's portfolio of complementary energy brands is aligned against distinctive consumer need states, and, together, these offerings will unlock significant growth and scale benefits across our entire DSD portfolio."
GHOST CEO and Co-Founder Dan Lourenco added, "We could not be more excited to build the future of GHOST together with KDP. As we thought about our company's next chapter, KDP's track record of cultivating disruptive brands, similar challenger mindset, and shared vision for the energy category and beyond made it the right home for our brand and team. We are excited to pair KDP's insights and capabilities with our products and people and know that together we will continue to scale and build GHOST towards our vision of a 100 year brand."
The Company will fully consolidate GHOST into its financial results upon close and expects the transaction to be neutral to modestly accretive to adjusted EPS starting in 2025. In the first stage of the transaction, the Company will make an initial cash investment of approximately
In the second stage of the transaction, KDP will purchase the outstanding
KDP plans to discuss the acquisition in greater detail on its third quarter 2024 results conference call to be held later this morning, Thursday, October 24, at 8:00 a.m. (ET).
BofA Securities served as financial advisor to Keurig Dr Pepper, with Cleary Gottlieb Steen & Hamilton LLP acting as legal advisor. Morgan Stanley & Co. LLC served as financial advisor to GHOST, with Winston & Strawn LLP acting as legal advisor.
Investors:
Investor Relations
Keurig Dr Pepper
T: 888-340-5287 / IR@kdrp.com
Keurig Dr Pepper Media:
Katie Gilroy
Keurig Dr Pepper
T: 781-418-3345 / katie.gilroy@kdrp.com
GHOST Media:
Carissa Bass
Startr Co.
T : 909-263-8083 / cizquierdo@startrco.com
Jillian Kwasizur
Startr Co.
T: 909-263-8083 / jkwasizur@startrco.com
About Keurig Dr Pepper
Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company in
About GHOST®
GHOST® is a lifestyle brand of sports nutrition products, energy drinks, dietary supplements, and apparel. GHOST® is disrupting the sports nutrition industry by creating a lifestyle movement that includes transparent innovative products, global distribution, immersive content, key influencer partnerships, and authentic collaborations with many of the world's leading flavor brands, including OREO®, Chips Ahoy!®, Sour Patch Kids®, Sonic® Drive-In, Warheads®, Swedish Fish® and
FORWARD-LOOKING STATEMENTS
Certain statements contained herein are "forward-looking statements" within the meaning of applicable securities laws and regulations. These forward-looking statements can generally be identified by the use of words such as "outlook," "guidance," "anticipate," "expect," "believe," "could," "estimate," "feel," "forecast," "intend," "may," "plan," "potential," "project," "should," "target," "will," "would," and similar words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements regarding the estimated or anticipated future results following the proposed transactions with GHOST Lifestyle LLC ("GHOST") and GHOST Beverages LLC, the anticipated benefits of the proposed transactions, including estimated synergies, the expected timing of completion of the proposed transactions and related transactions and other statements that are not historical facts. These statements are based on the current expectations of KDP's management, are not predictions of actual performance, and actual results may differ materially. Forward-looking statements are subject to a number of risks and uncertainties, including the factors disclosed in KDP's Annual Report on Form 10-K for the year ending December 31, 2023 and subsequent filings with the Securities and Exchange Commission. The Company is under no obligation to update, modify or withdraw any forward-looking statements, except as required by applicable law.
These forward-looking statements are subject to a number of risks and uncertainties regarding the proposed transactions and the business of the Company, GHOST and its affiliates, and actual results may differ materially. These risks and uncertainties include, but are not limited to: (i) the ability of the parties to successfully complete the proposed transactions on anticipated terms and timing, including obtaining required regulatory approvals and the satisfaction of other conditions to the completion of the proposed transactions, (ii) the Company's access to significant debt financing for the proposed transactions on a timely basis and reasonable terms and the impact such significant additional debt may have on the Company's ability to operate its business following the proposed transactions, (iii) risks relating to the integration of GHOST's operations, products and employees into KDP and its subsidiaries and the possibility that the anticipated synergies and other benefits of the proposed transactions will not be realized or will not be realized within the expected timeframe and (iv) risks relating to the businesses of KDP, GHOST and their subsidiaries and the industries in which they operate and will operate following the proposed transactions. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Any forward-looking statement made herein speaks only as of the date of this document. KDP is not under any obligation to, and expressly disclaims any obligation to, update or alter any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by applicable laws or regulations.
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SOURCE Keurig Dr Pepper
FAQ
How much is KDP paying for the initial 60% stake in GHOST?
When will KDP acquire the remaining 40% stake in GHOST?
What is the expected impact of the GHOST acquisition on KDP's earnings?
How will GHOST's distribution change after the acquisition by KDP?
