Keurig Dr Pepper to Sell Chobani Stake and Pennsylvania Plant for $925 Million
The beverage company will exit its Chobani equity investment and sell its Allentown facility while expanding a long-term distribution deal, using proceeds to cut debt.
Keurig Dr Pepper Inc. (NASDAQ: KDP) and Chobani announced a series of transactions that the companies say strengthen their longstanding partnership while advancing the growth and capital allocation priorities of both. KDP expects $925 million in pre-tax proceeds from the deals.
As part of the agreement, KDP will sell its full equity stake in Chobani back to the company for $800 million. In a related transaction, Chobani will acquire KDP's manufacturing facility and warehouse in Allentown, Pennsylvania for approximately $125 million, including the facility lease, equipment and operations.
Chobani intends to offer employment opportunities to the site's manufacturing and warehouse employees, while KDP staff in delivery, customer service and other corporate functions will remain with the company. Chobani will continue to manufacture certain products for KDP at the Allentown facility for a defined period under a co-manufacturing agreement. KDP plans to use the net proceeds to reduce debt as it positions its two future businesses, Beverage Co. and Global Coffee Co.
The companies are also expanding their long-term commercial relationship, with KDP continuing to distribute the La Colombe brand's ready-to-drink lattes and other Chobani-owned beverage products through its direct store delivery network. They will also continue their licensing, manufacturing and distribution agreement for La Colombe-branded K-Cup pods in the U.S. and Canada.
These transactions reflect the success of our partnership with Chobani and are designed to create value for both organizations. Together, they enhance our financial flexibility, strengthen the efficiency of our manufacturing network and support the expansion of our important distribution partnership with Chobani.
Hamdi Ulukaya, Founder & CEO of Chobani, said the partnership with KDP started with La Colombe in 2023 and grew when La Colombe became part of Chobani, adding that the deal means "more jobs and more opportunity for Pennsylvania farmers."
The transactions are expected to close in the third quarter of 2026, subject to the satisfaction of customary closing conditions. As with any pending deal, completion and the expected benefits are not guaranteed, and markets move; past results do not guarantee future outcomes.
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