Dr Pepper Snapple Group to Acquire Antioxidant-infused Beverage Business For $1.7 Billion
Dr Pepper Snapple Group, a leading producer of flavoured beverages in North America and the Caribbean, is acquiring Bai Brands and its complete portfolio of high-growth premium antioxidant infused beverages for $1.7 billion. Bai provides a strong platform for Dr Pepper Snapple Group to incubate and grow better-for-you beverages throughout the non-carbonated and carbonated beverage sectors. Bai is expected to generate approximately $425 million in net sales in 2017 and add an incremental $132 million to Dr Pepper Snapple Group’s current net sales expectation for 2017.
“We’re excited to welcome Bai into our family of great brands,” says Larry Young, president and chief executive of Dr Pepper Snapple Group. “In a relatively short time, Bai has carved out a leadership position in the enhanced water category and has now extended that success into other fast-growing and profitable categories. We’re equally impressed with their innovation pipeline, which will continue to meet the needs of consumers seeking great tasting, low-calorie beverages with natural flavors and no artificial sweeteners.”
Larry Young continues: “Bai has contributed greatly to our allied brand lineup since we began distributing it broadly in 2013. Adding it to the broad range of choices and options in our company-owned portfolio is a natural next step. Moving forward, we will empower Bai’s management team to continue the breakthrough and disruptive branding and innovation that have revolutionized their categories and work with them to put the brand in front of more consumers in more places.”
Bai is one of the fastest growing beverage brands, offering a family of premium better-for-you beverages. The Company’s product portfolio spans across several high-growth beverage categories including enhanced water, carbonated flavored water, coconut water and premium ready-to-drink teas. With its Bai, Bai Bubbles, Cocofusion and other innovative brands, Bai is positioned for expanding growth in key beverage segments. These highly profitable categories are projected to continue to grow worldwide for the foreseeable future. The acquisition of Bai will further enable us to meet growing consumer demand for better-for-you beverages.
Bai will operate within the Packaged Beverages segment and continue to be led by founder Ben Weiss.
The transaction, which is subject to customary closing conditions, is expected to close in the first quarter of 2017. The boards of both companies have approved the transaction.
