Keurig Green Mountain will merge with Dr Pepper Snapple Group in a transaction worth more than $21 billion, according to Reuters.
Here are four things to know about the deal.
1. The combined entity will be called "Keurig Dr Pepper." It will carry brands such as Snapple, Sunkist, Green Mountain Coffee and 7UP.
2. The transaction, slated to close in the second quarter of 2018, will diversify the products of Keurig's owner, Luxembourg-based JAB Holding. Keurig's deal with Dr Pepper Snapple is the latest in JAB Holding's acquisition spree.
3. Keurig CEO Bob Gamgort told Reuters, "We have a really wide portfolio of brands, we're able to address almost every consumer need in every format and ... to reach every point of sale. If you want to win in the beverage industry you need a portion of your portfolio that gives you significant scale and then you need to be able to layer in higher growth segments."
4. Dr Pepper Snapple shareholders will receive a special dividend of $103.75 per share, or a cash payment of $18.7 billion, under the deal. Dr Pepper Snapple shareholders will maintain a 13 percent stake in Keurig Dr Pepper.
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