KEURIG DR PEPPER AND NUTRABOLT ANNOUNCE STRATEGIC PARTNERSHIP Which includes A Prolonged-Phrase Income AND DISTRIBUTION Arrangement AND Fairness Expense BY KDP
BURLINGTON, Mass. and FRISCO, Texas and AUSTIN, Texas, Dec. 8, 2022 /PRNewswire/ — Keurig Dr Pepper Inc. (NASDAQ: KDP) and Nutrabolt nowadays declared a strategic partnership, which include a definitive agreement for a very long-phrase income and distribution arrangement that leverages KDP’s potent go-to-current market abilities and a important equity financial commitment that allows KDP to take part in the price generation upside anticipated to be designed by means of the strategic partnership. The equity expenditure is anticipated to near by year-close.
Nutrabolt is a rapidly growing, world energetic wellbeing and wellness corporation with a portfolio of manufacturers, together with C4® Electrical power, one particular of the speediest-increasing efficiency vitality consume manufacturers in the U.S. C4® Pre-Work out, the foremost pre-exercise session brand name globally and XTEND®, the #1 article-exercise routine recovery brand in the U.S.
Less than the lengthy-expression revenue and distribution arrangement, KDP will sell and distribute C4® Vitality in the huge the greater part of KDP’s firm-owned direct retailer distribution territories, which is envisioned to meaningfully enhance retail availability and house penetration for the brand. Nutrabolt will carry on to distribute C4® Power instantly or as a result of its current distribution network to the specialty, well being club and physical fitness channels and will carry on to get the job done with some of its existing beverage distributors in selected marketplaces.
KDP will make a hard cash expenditure in Nutrabolt of $863 million, or around $740 million internet of expected funds tax advantages, in exchange for desired fairness with a 5% yearly coupon paid in dollars or in-type. The financial commitment delivers KDP with an possession stake of approximately 30%, building KDP the most significant investor in Nutrabolt behind its Founder, Chairman and CEO, Doss Cunningham. Internet of the expected income tax added benefits, the investment decision represents a several under 4x estimated 2023 web income, which are envisioned to be previously mentioned $650 million. KDP also has the opportunity to make additional equity tied to in-market place execution and will have representation on the Nutrabolt board. In addition, the partnership presents KDP with rights to further more maximize its possession stake beneath several money increasing situations.
Commenting on the announcement, Chairman and CEO Bob Gamgort mentioned, “This partnership represents a gain-acquire transaction among our two providers. KDP gains significant presence in the rapidly expanding performance vitality consume marketplace and Nutrabolt gains entry to a strategic investor with extensive income and distribution capabilities to more accelerate its growth. We consider that bringing with each other the assets, talent and skills of the two firms will speed up innovation and growth and drive substantial value generation over time.”
Cunningham reported, “We are particularly very pleased of this business and the workforce members who created it from the ground up and, with the property and experience that KDP provides to the table, we are more assured than ever about the route of the business and our eyesight for the future. This strategic partnership will supercharge C4 Energy’s present-day growth trajectory by accelerating domestic penetration, boosting distribution and strengthening our general industrial capabilities. We will also be partnering with a talented and formidable leadership crew who shares our values, our aggressive spirit and has a identical philosophy of disciplined expansion and maximizing over-all benefit creation.”
“Over the past 20 years, Nutrabolt has developed from a bootstrap startup to become 1 of the fastest expanding international active wellbeing and wellness providers in the environment,” Cunningham ongoing. “This is an incredible minute for our corporation, and it is since of the remarkable contributions of our group members, commercial partners and those people who have economically backed us more than the years, namely MidOcean Associates, and CPG veterans and fairness investors Brian Goldberg and Clayton Christopher.”
The transition of C4® Strength distribution to KDP will arise throughout 2023, which is predicted to be a changeover and financial commitment year, with constrained impact on KDP economic results until eventually 2024, when KDP expects the strategic partnership to turn into accretive to its money outcomes.
Much more info about the partnership will be talked over at KDP’s formerly introduced fireplace chat on Dec. 15, 2022, at 2:30 p.m. (ET), hosted by Fairness Analyst Bryan Spillane with BofA Securities.
Advisors on the deal for KDP included Evercore Group LLC, Skadden, Arps, Slate and Meagher & Flom LLP. Jefferies LLC and Goldman Sachs & Co LLC served as fiscal advisors to Nutrabolt with Goodwin Procter LLP, Giannuzzi Lewendon LLP and Kirkland & Ellis LLP serving as legal advisors.
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About Keurig Dr Pepper
Keurig Dr Pepper (KDP) is a foremost beverage enterprise in North America, with once-a-year revenue approaching $13 billion and roughly 27,000 workers. KDP holds leadership positions in comfortable beverages, specialty espresso and tea, water, juice and juice beverages and mixers, and markets the #1 single provide coffee brewing technique in the U.S. and Canada. The Company’s portfolio of additional than 125 owned, licensed and partner brand names is made to fulfill pretty much any client have to have, any time, and incorporates Keurig®, Dr Pepper®, Green Mountain Coffee Roasters®, Canada Dry®, Snapple®, Bai®, Mott’s®, CORE® and The First Donut Shop®. By means of its effective revenue and distribution network, KDP can produce its portfolio of very hot and chilly beverages to approximately every position of buy for buyers. The Enterprise is committed to sourcing, creating and distributing its beverages responsibly by means of its Consume Very well. Do Superior. company duty system, including initiatives all over circular packaging, productive normal useful resource use and provide chain sustainability. For additional facts, visit www.keurigdrpepper.com.
Nutrabolt is a quick-developing, global lively wellbeing and wellness firm with a portfolio of market place main overall performance-oriented brands that energize and gas active existence. The firm’s disruptive and modern products contend in the Functional Beverage and Lively Nourishment segments, under three purchaser-liked makes: C4® (one of the speediest-increasing electricity drink makes in the United States and the #1 advertising world-wide pre-training brand), XTEND® (the #1 write-up-training recovery brand in the United States), and Cellucor® (an award-successful sporting activities diet manufacturer created in 2002).
Considering that its founding 20 many years in the past, Nutrabolt has set out to meet the discerning requirements of effectiveness athletes and exercise lovers, whilst attractive over and above this core team to include things like customers close to the globe who are earning healthful, energetic residing a every day priority.
Nutrabolt’s portfolio, which is dispersed in above 125 international locations, is marketed via company-owned DTC platforms, Amazon, and other 3rd-celebration e-commerce marketplaces, and is out there at major vendors throughout the U.S., which include Walmart, Goal, 7-Eleven, Walgreens, Kroger, H-E-B, Wawa, Publix, GNC, and the Vitamin Shoppe. For a lot more details about Nutrabolt, be sure to stop by www.nutrabolt.com.
Forward Hunting STATEMENTS
Specified statements contained herein are “ahead-on the lookout statements” inside the that means of relevant securities legislation and polices. These forward-on the lookout statements can generally be recognized by the use of text this kind of as “outlook,” “direction,” “foresee,” “anticipate,” “consider,” “could,” “estimate,” “sense,” “forecast,” “intend,” “may possibly,” “prepare,” “potential,” “job,” “must,” “concentrate on,” “will,” “would,” and comparable text. Forward-looking statements by their nature address issues that are, to various degrees, uncertain, this kind of as statements about the predicted long run outcomes of KDP’s strategic partnership with Nutrabolt, the expected positive aspects of the partnership (which includes KDP’s anticipated tax positive aspects), long term impacts on KDP economical results, and other statements that are not historical details. These statements are dependent on the present expectations of KDP’s administration, are not predictions of actual performance, and genuine results might differ materially.
Forward-seeking statements are matter to a range of risks and uncertainties, such as the aspects disclosed in KDP’s Once-a-year Report on Form 10-K and subsequent filings with the SEC. KDP is beneath no obligation to update, modify or withdraw any ahead-looking statements, besides as necessary by applicable regulation.
Resource Keurig Dr Pepper Inc. Nutrabolt