Keurig Dr Pepper Put on CreditWatch Negative Following Proposed JDE Peet's Deal, S&P Says

12:30 PM EDT, 08/25/2025 (MT Newswires) -- Keurig Dr Pepper's (KDP) ratings, including its BBB long-term and A-2 short-term ratings, were placed on CreditWatch negative by S&P Global Ratings on Monday after the beverage company said it plans to acquire Netherlands-based JDE Peet's in an all-cash tender offer for about 15.7 billion euros ($18.2 billion).

The ratings agency said the deal, which includes debt, values JDE Peet's at about $23 billion.

S&P Global cited the company's plan to take on significant debt to complete the transaction, adding that it expects to lower the long-term issuer credit rating one notch to BBB- closer to the completion of the deal.

The ratings agency said Keurig's leverage could rise to the "mid-to-high-5x range" at closing, above the company's 4x leverage as of June 30. However, it forecast that leverage should decline toward 4x within two years as the combined company benefits from cash generation, operating efficiencies, and growth in both its beverage and coffee segments, despite coffee price volatility risks and US tariffs on Brazilian imports.

Following the acquisition, Keurig plans to split into two independent companies, Beverage focused on the North American soft drinks and energy beverages, and Global Coffee for the coffee business.

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