CORE NUTRITION acquired by KEURIG DR PEPPER

Keurig Dr Pepper agreed to acquire CORE Nutrition, the premium enhanced beverage company behind CORE Hydration and CORE Organic, at a value of , funded with KDP common stock net of the buyer's existing equity investment and certain contractual adjustments. Founded in 2015, CORE has been an allied brand of the former Dr Pepper Snapple since 2016, and KDP already manages about two-thirds of its U.S. distribution. Net sales of all CORE beverages grew at an average annualized rate of approximately 115% over the past three years, with retail sales across measured and unmeasured channels estimated above $200 million in the latest 52 weeks. After closing, CORE Hydration and CORE Organic will keep moving mainly through KDP's company-owned direct store delivery network and independent distributors, while some existing CORE partners retain channel coverage. KDP CEO Bob Gamgort framed the deal as bringing an on-trend beverage into the owned brand family, and founder Lance Collins, who will hold shares in KDP, backed the strategy. The transaction is subject to customary closing conditions and was expected to close by the end of 2018, neutral to KDP's adjusted diluted EPS in 2019 and accretive thereafter. Evercore advised KDP, with Skadden, Arps, Slate, Meagher & Flom as legal counsel; Gibson, Dunn & Crutcher advised CORE and Whipstitch Capital provided a fairness opinion.