Keurig Dr Pepper Makes $863M Equity Investment In Energy Drink Maker Nutrabolt

Keurig Dr Pepper Inc. KDP and health and wellness company Nutrabolt have entered into a definitive agreement for a long-term sales and distribution arrangement.
In addition, Keurig has agreed to make a significant equity investment of $863 million in Nutrabolt, expected to close by year-end.
The investment provides KDP with an ownership stake of 30%, making KDP the largest investor in Nutrabolt behind its Founder, Chairman and CEO, Doss Cunningham.
KDP also can gain additional equity tied to in-market execution and will have representation on the Nutrabolt board.
Nutrabolt's brand portfolio includes the energy drink C4 Energy, pre-workout brand C4 Pre-Workout, and post-workout recovery brand XTEND.
Under the agreement, KDP will sell and distribute C4 Energy in most of its company-owned direct store distribution territories.
Nutrabolt will continue to distribute C4 Energy directly or through its existing distribution network.
KDP expects the transition of C4 Energy distribution to occur during 2023, with limited impact on its financial results until 2024, when KDP expects the strategic partnership to become accretive to its financial results.
KDP held $928 million in cash and equivalents as of September 30, 2022.
Price Action: KDP shares are trading higher by 0.75% at $38.22 on the last check Thursday.
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