Keurig Dr Pepper Inc. filed a Form 8-K on September 1, 2026, disclosing that its wholly-owned subsidiary Mott's LLP entered into definitive agreements on August 28, 2026, to exit the company's indirect equity interests in Chobani and sell certain related assets for total aggregate consideration of $925 million.

Key Highlights

  • Total consideration: $925 million, combining $800 million for the redemption of all indirect equity interests in Chobani and $125 million for the sale of certain assets including leasehold interests in two Allentown, Pennsylvania facilities.
  • Cash at closing: $400 million in cash payable at closing, plus $125 million from the asset sale, for a combined closing cash component of $525 million.
  • Promissory note: Chobani will issue a $400 million promissory note to a subsidiary of the company, maturing on December 26, 2026.
  • Expected close: Transactions are currently expected to close in the third quarter of 2026, subject to satisfaction of customary closing conditions.
  • Counterparty: The agreements are with FHU US Holdings, LLC, a Delaware limited liability company, and certain of its affiliates, collectively referred to as "Chobani" in the filing.
  • Signing entity: Mott's LLP, a Delaware limited liability partnership and a wholly-owned subsidiary of Keurig Dr Pepper Inc., along with certain other company affiliates, entered the definitive agreements.

Keurig Dr Pepper Agrees to Redeem Chobani Equity Interests and Sell Pennsylvania Facilities

According to the filing, Mott's LLP and certain other affiliates of Keurig Dr Pepper Inc. (NASDAQ:KDP) entered into definitive agreements on August 28, 2026, with FHU US Holdings, LLC and certain of its affiliates, collectively referred to as "Chobani," covering two distinct transactions. The first is the redemption of all of the company's indirect equity interests in Chobani for aggregate consideration of $800 million. That amount is structured as $400 million in cash payable at closing and a $400 million promissory note to be issued by Chobani to a subsidiary of the company, which matures on December 26, 2026.

The second transaction, as disclosed in the filing, involves the sale of certain assets, specifically described as including the company's leasehold interests in two facilities located in Allentown, Pennsylvania, for $125 million. The filing does not detail additional assets included beyond the leasehold interests. Together, the two transactions carry total stated consideration of $925 million.

The filing states the transactions are currently expected to close in the third quarter of 2026, subject to the satisfaction of customary closing conditions. The 8-K includes forward-looking statements, which the company cautions are "not predictions of actual performance" and are subject to risks including the possibility that the transactions may not be completed in the anticipated timeframe or at all, risks related to the transition of the Allentown facility, and the possibility that anticipated benefits, including "expected proceeds, deleveraging and enhanced financial flexibility," are not realized. A press release dated September 1, 2026, is attached as Exhibit 99.1.

What Was Disclosed

Keurig Dr Pepper disclosed definitive agreements to redeem its indirect Chobani equity interests for $800 million and sell leasehold interests in two Allentown, Pennsylvania facilities for $125 million, with closing expected in the third quarter of 2026.