Keurig Dr Pepper is selling its full Chobani Equity stake for $800 million and Allentown Assets for $125 million, generating $925 million in pre-tax proceeds. KDP intends to use the net proceeds to reduce debt, while an expanded distribution relationship with Chobani continues across beverages and La Colombe K-Cup pods.

Key Highlights

  • The Chobani transaction includes $400 million in cash and a $400 million promissory note.
  • The Chobani-issued note matures on December 26, 2026.
  • Chobani intends to offer jobs to Manufacturing and Warehouse employees at the Allentown site.

Keurig Dr Pepper Inc. (NASDAQ: KDP) has agreed to sell its Chobani equity stake and Allentown Facility in transactions generating $925 million in pre-tax proceeds.

$800M Chobani Stake Sale and Pennsylvania Facility Transfer

KDP will redeem all of its indirect equity interests in Chobani for $800 million. The consideration consists of $400 million in cash at closing and a $400 million Promissory Note issued by Chobani to a KDP subsidiary. The note matures on December 26, 2026. Chobani intends to offer employment opportunities to manufacturing and warehouse employees at the site, while KDP employees in delivery, Customer Service and corporate functions will remain with KDP.

Debt Reduction Paired With Expanded Chobani Distribution

KDP said the net proceeds are intended to support its debt-reduction goals. The filing identifies deleveraging and enhanced financial flexibility as anticipated benefits of the transactions. The companies are updating and broadening their commercial relationship, with KDP continuing to distribute La Colombe ready-to-drink lattes and other Chobani-owned beverages through its direct store delivery network, including future ready-to-drink products. Chobani will continue manufacturing certain KDP products at Allentown for a defined period under a co-manufacturing agreement. The stated risks include delays or failure to close, an inability to realize expected proceeds or deleveraging, transition issues at Allentown and possible litigation.

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