Keurig Dr Pepper (KDP), Burlington, Mass., and Plano, Texas, have entered into a definitive agreement to acquire CORE Nutrition LLC at a value of $525 million, or approximately $435 million net of anticipated tax benefits. 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, both currently distributed by KDP.
The acquisition of CORE Nutrition will be funded with KDP common stock, net of KDP’s current equity investment and certain other contractual adjustments. The company expects the transaction to be neutral to KDP’s adjusted diluted earnings per share in 2019 and accretive thereafter.