Plano, Texas-based Dr Pepper Snapple Group Inc. (DPS) announced that its shareholders have approved two proposals to allow for the issuance of DPS common stock to the previously announced Agreement and Plan of Merger, the company said. The merger agreement, , dated Jan. 29, 2018, says that DPS, Salt Merger Sub Inc. and Maple Parent Holdings Corp., the parent company of Keurig Green Mountain Inc., Waterbury, Vt., will share common stock, it adds.
According to the preliminary results from the June 29, annual meeting of shareholders, more than 99 percent of the votes cast were in favor of the proposals to approve the issuance of DPS common stock as merger consideration pursuant to the merger agreement and to amend the certificate of incorporation of DPS to increase the number of authorized shares to permit such issuance, the company says.
With the shareholder approval secured, the merger is expected to close on July 9, subject to the usual terms and conditions, resulting in the formation of Keurig Dr Pepper, it says. Shares of Keurig Dr Pepper will begin trading on July 10, on the New York Stock Exchange under the symbol “KDP,” the company adds.
“It’s been my honor to lead our great team, and I couldn’t be more proud of the work they’ve done over the past 10 years to build our great brands, execute with excellence and deliver value to our shareholders,” said Larry Young, DPS president and chief executive officer (CEO), in a statement. “I am very excited for what the future holds for Keurig Dr Pepper, and I am looking forward to supporting the leadership of the business.”
“Keurig Dr Pepper will unite two great companies to create a new challenger in the beverage industry,” Bob Gamgort, current president and CEO of Keurig Green Mountain, said in a statement. “We are excited about the potential this combination creates and look forward to creating significant value for all stakeholders.”
DPS’ Young is scheduled to retire and join the KDP Board of Directors while Keurig Green Mountains’ Gamgort will become the new CEO of KDP, the company says.
At its inception, Keurig Dr Pepper will be the seventh-largest company in the U.S. food and beverage sector and the third-largest non-alcoholic beverage business in the country, it adds.