Keurig buys Dr. Pepper Snapple, creating a beverage giant

PLANO, Texas — Keurig is buying Dr. Pepper Snapple Group Inc., creating a beverage giant with about $11 billion in annual sales.

The companies, both the result of previous mergers, will bring under one tent global brands like Dr Pepper, 7UP, Snapple, A&W, Mott’s, Sunkist and Keurig’s single-serve coffee makers.

Keurig Green Mountain Inc. said Monday that Dr. Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and keep 13 per cent of the combined company.

Shares of Dr. Pepper Snapple soared more than 36 per cent before the opening bell Monday.