Insider Trading Tue 3/12/24

Notable purchases -- Chief R&D Officer adds to KDP; notable sales -- CBO active in RARE

Buyers:

• CRBP 10% owner Cormorant Asset Management bought 550,000 shares at $37.53 - $46.00 worth ~$23.3 mln.
• CSV Director bought 5,000 shares at $26.10 worth ~$131K.
• FGEN CEO bought 50,000 shares at $1.9094 worth ~$95K.
• HWBK Director bought 5,000 shares at $19.90 - $20.645 worth ~$102K.
• KDP Chief R&D Officer bought 4,075 shares at $29.11 worth ~$119K.
• MOFG CEO bought 4,447 shares at $22.4866 worth ~$100K.

Sellers:

• ATR Segment President and one (1) Director sold 5,500 shares combined worth ~$785K.
• LKFN EVP sold 5,247 shares at $66.75 worth ~$350K.
• MDC Director sold 6,200 shares at $62.69 worth ~$389K.
• RARE Chief Business Officer & EVP sold 11,509 shares at $49.92 - $50.06 worth ~$575K.
• USNA Executive Chairman and COO sold 16,251 shares combined at $48.98 - $49.16 worth ~$797K.

-=Keurig Dr Pepper (KDP) to acquire Core Nutrition for $525m

Keurig Dr Pepper to acquire CORE Nutrition at a value of $525 mln, or approx. $435 mln net of anticipated tax benefits 

• CORE Nutrition is a premium enhanced beverage company founded in 2015 and allied with KDP since 2016. Its rapidly growing portfolio includes CORE Hydration, a premium, nutrient-enhanced bottled water, and CORE Organic, USDA-certified organic enhanced fruit hydration, both currently distributed by KDP.
• Net sales of all CORE beverages have grown at an average annualized rate of approx. 115% over the past three years, with current retail sales estimated in excess of $200 mln in the latest year.
• The acquisition will be funded with KDP common stock and is expected to be neutral to KDP's adj. diluted EPS in 2019 and accretive thereafter.

Keurig Dr Pepper (KDP) declares first quarterly dividend of $0.15/share

• dividend of $0.15 per share, payable on October 19, 2018 to shareholders of record on October 5, 2018. 

BURLINGTON, Mass. and PLANO, Texas, Sept. 13, 2018 /PRNewswire/ -- Keurig Dr Pepper (KDP) announced today that its Board of Directors authorized a quarterly dividend program and declared its first quarterly dividend on the Company's common stock.  KDP will pay a dividend of $0.15 per share, payable in U.S. dollars, on October 19, 2018, to shareholders of record on October 5, 2018. 

The Company has determined that the former Dr Pepper Snapple Group dividend reinvestment plan ("DPS Direct Invest") will remain in effect for the current dividend, and the Company expects to replace the DPS Direct Invest program with a new shareholder funded plan, beginning with the next quarterly dividend.

Commenting on the dividend declaration, Keurig Dr Pepper CFO Ozan Dokmecioglustated, "We are pleased to announce our first quarterly dividend of $0.15 per share.  This is consistent with our expectation to pay an annualized dividend of $0.60 per share established at the time the merger transaction between Keurig Green Mountain and Dr Pepper Snapple Group was announced on January 29, 2018."

ABOUT KEURIG DR PEPPERKeurig Dr Pepper (KDP) is a leading coffee and beverage company in North America, with annual revenue in excess of $11 billion. KDP holds leadership positions in soft drinks, specialty coffee and tea, water, juice and juice drinks and mixers, and markets the #1 single serve coffee brewing system in the U.S. The Company maintains an unrivaled distribution system that enables its portfolio of more than 125 owned, licensed and partner brands to be available nearly everywhere people shop and consume beverages. With a wide range of hot and cold beverages that meet virtually any consumer need, KDP key brands include Keurig®, Dr Pepper®, Green Mountain Coffee Roasters®, Canada Dry®, Snapple®, Bai®, Mott's® and The Original Donut Shop®. The Company employs more than 25,000 employees and operates more than 120 offices, manufacturing plants, warehouses and distribution centers across North America. For more information, visit www.keurigdrpepper.com.

Keurig Dr Pepper (KDP)

Keurig Dr Pepper, formerly Keurig Green Mountain and originally Green Mountain Coffee Roasters, is a publicly traded American beverage and beverage-maker conglomerate.

• Dual headquarters in Burlington, Massachusetts and Plano, Texas. 
• Parent organization: JAB Holding Company (87%)
• drpeppersnapplegroup.com

  

Dr Pepper Snapple (DPS) and Keurig Green Mountain to merge

• JAB will acquire a Plano, Texas-based group best-known for sugary drinks, such as Dr Pepper, Snapple, A & W root beer and Sunkist orange soda. The group was spun off from Cadbury Schweppes in 2008.
• Mondelez International, which partnered with JAB on its December 2015 takeover of Keurig, will own around 13 to 14 per cent of the combined group.
• Germany's JAB Holding: owners of Keurig Green Mountain, Krispy Kreme, Panera Bread, Einstein Bros. Bagels, Caribou Coffee, Peet's Coffee & Tea, Mighty Leaf Tea, Jacobs Douwe Egberts.  About 20% of U.S. households use Keurig’s coffee-pod system. 
• Update 7/15/18 below

   

** charts after announcement **

 

Dr Pepper Snapple and Keurig Green Mountain to merge -- DPS shareholders will receive $103.75/share in a special cash dividend and retain 13% of the combined company 

Keurig Dr Pepper will have pro forma combined 2017 annual revenues of approximately $11 billion. The company believes its complementary portfolio, access to high-growth segments of the beverage industry and shareholder value-focused management team will enable it to achieve sustained growth through continued innovation, brand consolidation opportunities and enhanced household penetration for its leading brands.

• KDP targets realizing $600 million in synergies on an annualized basis by 2021. Dr Pepper Snapple expects to pay its first quarter ordinary course dividend of $0.58 per share. At the close of the transaction, the company expects to deliver an annual dividend of $0.60 per share.
• The company will deliver strong cash flow generation and accelerate its deleveraging, with a target Net Debt/EBITDA of below 3.0x within two to three years after closing. KDP anticipates total net debt at closing to be approximately $16.6 billion and it anticipates maintaining an investment grade rating.
• JAB Holding Company, a global investment firm with a proven track record of investing long-term capital in global consumer brands, and its partners, will together make an equity investment of $9 billion as part of the financing of the transaction. JAB will be investing equity capital from JAB Holding Company as well as through JAB Consumer Fund, an investment fund backed by a group of like-minded, long-term oriented investors. Both JAB Holding Company and JAB Consumer Fund are overseen by three senior partners: Peter Harf, Bart Becht and Olivier Goudet. Entities affiliated with BDT Capital Partners, a Chicago-based merchant bank that provides long-term private capital and advice to closely held companies, are also investing alongside JAB. Upon closing of the transaction, JAB will be the controlling shareholder. Mondelez International (MDLZ), JAB's partner in Keurig, will hold an approximately 13-14% stake in the combined company.

*********

Update 7/15/18

Keurig Dr Pepper (KDP) https://www.drpeppersnapplegroup.com/

Keurig Dr Pepper's first week post-merger brings a defection, an acquisition and new volleys in coffee wars

• Dr Pepper Snapple Group's this week closed its merger with Keurig Green Mountain.
• The deal has cast uncertainty on Keurig Dr Pepper's so-called "Allied Brands," trendy drinks it distributes but does not own.
• Fiji announced this week it will leave Keurig Dr Pepper's distribution network. Another Allied Brand, Big Red, this week signed an agreement to sell to KDP.

The deal, which closed Monday, creates a beverage giant with $11 billion in revenue that combines Dr Pepper Snapple's drink and distribution network with Keurig' Green Mountain's coffee business. The giant is backed by JAB Holding, the investment firm that has put together a coffee-fueled empire that already includes Krispy Kreme and Panera Bread.

This week's shake-up, though, is among brands far smaller than the iconic drinks for which both companies are named. Instead, it's within the collection of trendy beverages Keurig Dr Pepper distributes through its "Allied Brands" network. A sizable chunk of the company's revenue comes from distributing drinks made by other companies, including brands like Fiji Water, BodyArmor and Vita Coco.

The loss of Fiji, while minuscule to Keurig Dr Pepper's bottom line, is a bruise nonetheless.

The premium water brand is owned by privately held The Wonderful Co., the $4 billion owner of POM Wonderful pomegranate juices, Landmark Wines, Wonderful Almonds, and other trendy drinks and snacks.

Premium water is among the beverage industry's fastest-growing categories as consumers eschew sweeteners and artificial ingredients. It provided a balance to Dr Pepper Snapple's legacy portfolio of drinks dominated by sugary soda brands, like 7UP, A&W Root Beer and Crush.

** charts before  announcement **