Dr Pepper Snapple Group, Inc. (NYSE: DPS) today announced that its shareholders have approved two proposals to allow for the issuance of DPS common stock pursuant to the previously announced Agreement and Plan of Merger, dated as of January 29, 2018 (the “Merger Agreement”), by and among DPS, Salt Merger Sub Inc. and Maple Parent Holdings Corp., the parent company of Keurig Green Mountain, Inc.
According to the preliminary results from today’s annual meeting of shareholders, more than 99 percent of the votes cast voted for the proposals to approve the issuance of DPS common stock as merger consideration pursuant to the Merger Agreement and to amend the certificate of incorporation of DPS to increase the number of authorized shares to permit such issuance.
With shareholder approval secured, the merger is expected to close on Monday, July 9, pursuant to the terms and subject to the conditions set forth in the Merger Agreement and will result in the formation of Keurig Dr Pepper. Shares in Keurig Dr Pepper will begin trading on Tuesday, July 10, on the New York Stock Exchange under the symbol “KDP.”
At its inception, Keurig Dr Pepper will be the seventh-largest company in the U.S. food and beverage sector and the third-largest non-alcoholic beverage business in the country, with combined 2017 sales of approximately $11 billion.
“It’s been my honor to lead our great team, and I couldn’t be more proud of the work they’ve done over the past 10 years to build our great brands, execute with excellence and deliver value to our shareholders,” said DPS President and CEO Larry Young, who will retire and join the KDP board of directors upon close. “I’m very excited for what the future holds for Keurig Dr Pepper, and I’m looking forward to supporting the leadership of the business.”
“Keurig Dr Pepper will unite two great companies to create a new challenger in the beverage industry,” said Bob Gamgort, current president and CEO of Keurig Green Mountain, who will become CEO of KDP upon close. “We are excited about the potential this combination creates and look forward to creating significant value for all stakeholders.”
The requisite regulatory approvals in the U.S. and Canada for the merger have been obtained. The final voting results will be disclosed in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission later today.Wake up Right! Subscribe to our Morning Briefing and get the news delivered to your inbox before breakfast!