, /PRNewswire/ — Keurig Dr Pepper Inc. (NASDAQ: KDP) and Nutrabolt today appear a strategic partnership, including a definitive understanding for a long-term sales and distribution arrangement that leverages KDP’s powerful become-to-market capabilities and a meaning disinterestedness investment that enables KDP to participate in the value creation upside expected to be created through the strategic partnership. The equity investment is expected to close past twelvemonth-end.
Nutrabolt is a quickly growing, global active wellness and wellness company with a portfolio of brands, including C4® Energy, one of the fastest-growing performance energy potable brands in the U.S.; C4® Pre-Workout, the leading pre-workout brand globally; and XTEND®, the #1 postal service-workout recovery make in the U.Due south.
Under the long-term sales and distribution agreement, KDP will sell and distribute C4® Energy in the vast majority of KDP’s company-owned directly store distribution territories, which is expected to meaningfully increase retail availability and household penetration for the make. Nutrabolt will proceed to distribute C4® Free energy direct or through its existing distribution network to the specialty, health club and fitness channels and will go on to work with some of its existing drinkable distributors in sure markets.
KDP will make a cash investment in Nutrabolt of
$863 million, or approximately
internet of anticipated greenbacks taxation benefits, in commutation for preferred equity with a 5% annual coupon paid in cash or in-kind. The investment provides KDP with an buying pale of approximately xxx%, making KDP the largest investor in Nutrabolt behind its Founder, Chairman and CEO, Doss Cunningham. Cyberspace of the anticipated cash revenue enhancement benefits, the investment represents a multiple below 4x estimated 2023 net sales, which are expected to be above
$650 meg. KDP also has the opportunity to earn additional equity tied to in-market execution and will have representation on the Nutrabolt lath. In addition, the partnership provides KDP with rights to farther increase its ownership stake under various majuscule raising scenarios.
Commenting on the announcement, Chairman and CEO
stated, “This partnership represents a win-win transaction between our ii companies. KDP gains significant presence in the rapidly growing performance energy drinkable market and Nutrabolt gains access to a strategic investor with all-encompassing sales and distribution capabilities to further accelerate its growth. Nosotros believe that bringing together the resources, talent and expertise of both companies will accelerate innovation and growth and drive significant value creation over time.”
said, “We are extremely proud of this business and the team members who built information technology from the ground upwards and, with the assets and experience that KDP brings to the tabular array, we are more confident than ever well-nigh the direction of the company and our vision for the time to come. This strategic partnership volition supercharge C4 Energy’south current growth trajectory by accelerating household penetration, enhancing distribution and strengthening our overall commercial capabilities. Nosotros will also be partnering with a talented and aggressive leadership team who shares our values, our competitive spirit and has a similar philosophy of disciplined growth and maximizing overall value creation.”
“Over the past 20 years, Nutrabolt has grown from a bootstrap startup to become one of the fastest growing global agile health and wellness companies in the earth,”
continued. “This is an amazing moment for our visitor, and information technology is because of the incredible contributions of our team members, commercial partners and those who have financially backed us over the years, namely MidOcean Partners, and CPG veterans and equity investors
The transition of C4® Free energy distribution to KDP will occur during 2023, which is expected to be a transition and investment year, with limited impact on KDP financial results until 2024, when KDP expects the strategic partnership to become accretive to its financial results.
More information regarding the partnership will be discussed at KDP’s previously announced fireside chat on
Dec. fifteen, 2022, at two:30 p.m. (ET), hosted by Equity 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 financial advisors to Nutrabolt with Goodwin Procter LLP, Giannuzzi Lewendon LLP and Kirkland & Ellis LLP serving as legal advisors.
Steve Alexander (Investors)
T: 972-673-6769 /[email protected]
Chethan Mallela (Investors)
T: 646-620-8761 /[electronic mail protected]
Katie Gilroy (Media)
T: 781-418-3345 /[email protected]
Virtually Keurig Dr Pepper
Keurig Dr Pepper (KDP) is a leading beverage visitor in North America, with almanac revenue approaching $13 billion and approximately 27,000 employees. KDP holds leadership positions in soft drinks, specialty coffee and tea, h2o, juice and juice drinks and mixers, and markets the #1 unmarried serve java brewing organization in the U.S. and Canada. The Company’s portfolio of more 125 owned, licensed and partner brands is designed to satisfy virtually whatsoever consumer need, any time, and includes Keurig®, Dr Pepper®, Light-green Mountain Coffee Roasters®, Canada Dry®, Snapple®, Bai®, Mott’s®, CORE® and The Original Donut Store®. Through its powerful sales and distribution network, KDP can deliver its portfolio of hot and common cold beverages to nearly every indicate of purchase for consumers. The Visitor is committed to sourcing, producing and distributing its beverages responsibly through its Drink Well. Practice Good. corporate responsibility platform, including efforts effectually circular packaging, efficient natural resource employ and supply chain sustainability. For more data, visit www.keurigdrpepper.com.
Nutrabolt is a fast-growing, global active health and health visitor with a portfolio of market leading performance-oriented brands that energize and fuel active lifestyles. The company’s confusing and innovative products compete in the Functional Beverage and Agile Nutrition segments, under three consumer-loved brands: C4® (1 of the fastest-growing energy drink brands in
the United states of america
and the #1 selling global pre-workout brand), XTEND® (the #1 post-conditioning recovery brand in
the United States), and Cellucor® (an award-winning sports nutrition brand created in 2002).
Since its founding twenty years ago, Nutrabolt has set out to come across the discerning needs of functioning athletes and fettle enthusiasts, while appealing beyond this cadre grouping to include consumers around the earth who are making good for you, active living a daily priority.
Nutrabolt’s portfolio, which is distributed in over 125 countries, is sold through company-owned DTC platforms, Amazon, and other third-party e-commerce marketplaces, and is bachelor at leading retailers across the U.S., including Walmart, Target, 7-Xi, Walgreens, Kroger, H-East-B, Wawa, Publix, GNC, and the Vitamin Shoppe. For more data virtually Nutrabolt, delight visit world wide web.nutrabolt.com.
Forrad LOOKING STATEMENTS
Certain statements contained herein are “forrad-looking statements” within the significant of applicable securities laws and regulations. These forward-looking statements tin more often than not exist identified by the use of words such every bit “outlook,” “guidance,” “anticipate,” “expect,” “believe,” “could,” “estimate,” “feel,” “forecast,” “intend,” “may,” “programme,” “potential,” “project,” “should,” “target,” “will,” “would,” and similar words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements regarding the expected future results of KDP’s strategic partnership with Nutrabolt, the anticipated benefits of the partnership (including KDP’s anticipated taxation benefits), future impacts on KDP financial results, and other statements that are not historical facts. These statements are based on the current expectations of KDP’s management, are not predictions of bodily functioning, and actual results may differ materially.
Forward-looking statements are subject to a number of risks and uncertainties, including the factors disclosed in KDP’due south Annual Report on Class 10-Chiliad and subsequent filings with the SEC. KDP is under no obligation to update, modify or withdraw any forward-looking statements, except every bit required by applicative constabulary.
SOURCE Keurig Dr Pepper Inc.; Nutrabolt