KDP to Receive $925M from Chobani in Equity and Asset Sale

Keurig Dr Pepper (KDP) has entered into definitive agreements with Chobani to sell its entire equity stake in the company and a manufacturing facility in Allentown, Pennsylvania, for total pre-tax proceeds of $925 million. KDP plans to use the net proceeds for debt reduction while also expanding its commercial and distribution partnership with Chobani.

Key Details

• Total Proceeds: $925 million, consisting of $800 million for the redemption of KDP's equity interests in Chobani and $125 million for the sale of the Allentown, PA facility.
• Payment Terms: The $800 million equity payment includes $400 million in cash at closing and a $400 million promissory note from Chobani due December 26, 2026.
• Strategic Partnership: The companies are expanding their long-term distribution agreement for Chobani-owned ready-to-drink beverages, including the La Colombe brand.
• Timeline: The transactions are expected to close in the third quarter of 2026, subject to customary closing conditions.