Keurig Dr Pepper is set to acquire a 60% stake in energy drink company GHOST for $1.65 billion, with a strategy aimed at expanding its presence in the rapidly growing energy drink market.

Overview of the Deal

On October 24, 2024, Keurig Dr Pepper (NASDAQ: KDP), a leading beverage company, announced a definitive agreement to acquire GHOST, a rapidly growing energy drink and sports nutrition brand, for a total transaction size of $1.65 billion. This acquisition will involve an initial 60% stake worth approximately $990 million, with plans to acquire the remaining 40% by 2028, depending on GHOST's financial performance in 2027.

Founded in 2016, GHOST has emerged as a popular brand characterized by its unique identity, innovative flavors, and strong presence in the market. Over the past three years, GHOST's sales have more than quadrupled, making it an attractive opportunity for KDP to diversify and expand its beverage offerings. Importantly, GHOST's co-founders will continue to lead the brand, ensuring the preservation of its unique character and innovative approach under KDP's management.

Industry Overview in the U.S.

The energy drink sector in the United States has experienced substantial growth in recent years as consumer preferences shift towards healthier and functional beverages. The popularity of energy drinks has surged, particularl