Keurig Dr Pepper has proposed acquiring Peet’s Coffee, a move that has sparked concerns in the stock market. The deal is being met with skepticism, as it may not provide sufficient value to existing shareholders.
Keurig Dr Pepper announced its intention to acquire Peet’s Coffee for approximately $2.1 billion in April 2023. The acquisition would mark Keurig Dr Pepper’s entry into the premium coffee market.
However, some analysts believe that the deal is undervalued and may not be in the best interest of existing shareholders. A significant portion of Peet’s Coffee’s market value lies outside of its US operations, which could limit Keurig Dr Pepper’s ability to capitalize on this growth.
As a result, some investors are expressing concerns about the potential risks associated with the deal. They argue that Keurig Dr Pepper may face increased competition from other players in the premium coffee market, as well as potential disruptions to its supply chain and operations.
The stock market’s reaction to the deal has been cautious, with some analysts warning that it may not provide a significant boost to Keurig Dr Pepper’s valuation.
Source: https://www.barrons.com/articles/kdp-stock-price-keurig-dr-pepper-peets-coffee-deal-e8911e33