PLANO, TEXAS — Dr Pepper Snapple Group, Inc. has entered into an agreement to acquire Bai Brands, Princeton, N.J., the maker of such better-for-you beverage brands as Bai, Bai Bubbles, Cocofusion, Antiwater and Supertea. The total purchase price is $1.7 billion in cash and Dr Pepper Snapple will receive a tax benefit of approximately $400 million from the transaction.
The Bai business is expected to generate approximately $425 million in sales during 2017 for Dr Pepper Snapple.
|Larry Young, president and c.e.o. of Dr Pepper Snapple|
“We’re excited to welcome Bai into our family of great brands,” said Larry Young, president and chief executive officer of Dr Pepper Snapple. “In a relatively short time, Bai has carved out a leadership position in the enhanced water category and has now extended that success into other fast-growing and profitable categories. We’re equally impressed with their innovation pipeline, which will continue to meet the needs of consumers seeking great tasting, low-calorie beverages with natural flavors and no artificial sweeteners.”
Bai has had a distribution relationship with Dr Pepper Snapple since 2013 and Mr. Young said the Bai line of products “contributed greatly” to the company’s allied brand line.
“Adding it to the broad range of choices and options in our company-owned portfolio is a natural next step,” Mr. Young said. “Moving forward, we will empower Bai’s management team to continue the breakthrough and disruptive branding and innovation that have revolutionized their categories and work with them to put the brand in front of more consumers in more places.”
The Bai business will continue to be led by founder Ben Weiss once the transaction is complete.
|Ben Weiss, founder of Bai Brands|
“Over the past seven years, Bai has proven to be an agent of change in a marketplace that is rapidly evolving,” Mr. Weiss said. “We’ve worked tirelessly to challenge the notion that better-for-you beverages can’t taste good. On our journey, we found a strong ally in D.P.S., an ally who embraced our mission to change the way the world drinks. Now, it only makes sense to continue our quest together. We are thrilled to join the DPS family and create a new path forward with infinite possibilities.”