WASHINGTON (dpa-AFX) - Beverage company Keurig Dr Pepper Inc. (KDP) on Tuesday said it has agreed to sell its entire equity stake in yogurt and beverage maker Chobani, back to the company for $800 million. It will also sell its manufacturing facility and warehouse in Allentown, Pennsylvania, to Chobani for approximately $125 million.
KDP said it plans to use the proceeds from the transactions to reduce debt as it prepares to operate Beverage Co. and Global Coffee Co. businesses separately.
Under the deal, Chobani will take over the Allentown facility, including the lease, equipment and operations, and plans to offer jobs to the site's manufacturing and warehouse employees. Chobani will also continue to manufacture certain products for KDP at the facility during a transition period under a co-manufacturing agreement.
The companies will expand their distribution partnership, with KDP continuing to distribute Chobani-owned beverages, including La Colombe ready-to-drink lattes, through its direct-store-delivery network. They will also maintain their agreement covering the licensing, manufacturing and distribution of La Colombe-branded K-Cup pods in the U.S. and Canada.
The transactions are expected to close in the third quarter of 2026.
'These transactions reflect the success of our partnership with Chobani and are designed to create value for both organizations,' said Tim Cofer, CEO at Keurig Dr Pepper. 'Together, they enhance our financial flexibility, strengthen the efficiency of our manufacturing network and support the expansion of our important distribution partnership with Chobani. This change also positions the Allentown facility for continued growth under an owner whose strategic priorities are well matched to the site, while ensuring continuity for our brands, customers and employees.'
KDP shares were down 0.34% in pre-market trading after closing at $31.86 on Monday.
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