Chobani to invest $1.2 billion in Allentown campus, create 900 jobs
Keurig Dr Pepper is selling its minority stake in Chobani back to the privately held yogurt maker for $925 million, the Frisco, Texas-based beverage company said Tuesday. The transaction, slated to close by the end of the month, unwinds a commercial partnership between the publicly traded beverage company and Chobani as Keurig Dr Pepper prepares to spin off its coffee operations.
The $925 million includes $800 million for the equity stake and $125 million for a manufacturing plant and warehouse in Allentown, Pennsylvania. Keurig Dr Pepper said it will use the proceeds to pare its debt load as it advances the spinoff of its Peet’s and Keurig businesses into a standalone “pure-play” coffee company.
Privately held Chobani said it plans to invest about $1.2 billion over the next five years at the Allentown campus, creating more than 900 jobs. Chobani owns the La Colombe coffee brand, whose ready-to-drink lattes and other beverages have been distributed through Keurig Dr Pepper’s direct-store-delivery network.
The two companies said they will continue those distribution ties. Keurig Dr Pepper will keep distributing the La Colombe brand’s ready-to-drink lattes and other Chobani-owned beverages through its direct-store-delivery network. The companies will also continue their long-term licensing, manufacturing and distribution agreement for La Colombe-branded K-Cup pods in the U.S. and Canada.