PLANO, TEXAS — Keurig Dr Pepper has entered into an agreement to acquire Core Nutrition L.L.C. for $525 million. Core Nutrition is a manufacturer of Core Hydration, a bottled water, and Core Organic, and the business has annual sales of approximately $200 million.
Prior to the acquisition agreement, Keurig Dr Pepper and Core Nutrition were working together. Approximately two-thirds of Core Nutrition’s distribution is through the Keurig Dr Pepper supply chain network.
“Core has been a valued and successful allied brand partner, and we are pleased that this on-trend beverage will become part of our owned K.D.P. family of brands,” said Bob Gamgort, chief executive officer of Keurig Dr Pepper. “Our sales and distribution capabilities have helped fuel significant growth for the Core portfolio. Through this transaction we intend to realize the full growth potential for the business.”
The acquisition of Core Nutrition will be funded with Keurig Dr Pepper common stock, net of the company’s current equity investment and certain other contractual adjustments. Keurig Dr Pepper expects the transaction to be neutral to its adjusted diluted earnings per share in 2019 and accretive thereafter.
“We created Core to meet the increasing desires for innovative, enhanced water offerings with functional benefits for today’s modern consumer,” said Lance Collins, founder of Core. “K.D.P. has been an outstanding partner for Core, and I am certain that, under its ownership, Core will continue to see tremendous long-term success. I am a strong supporter of the K.D.P. strategy and business model and am looking forward to being a shareholder in the company.”