BURLINGTON, Mass. and FRISCO, Texas and AUSTIN, Texas, Dec. 8, 2022 /PRNewswire/ — Keurig Dr Pepper Inc. (NASDAQ: KDP) and Nutrabolt in the present day introduced a strategic partnership, together with a definitive settlement for a long-term gross sales and distribution association that leverages KDP’s highly effective go-to-market capabilities and a big fairness funding that allows KDP to take part within the worth creation upside anticipated to be created by the strategic partnership. The fairness funding is predicted to shut by year-end.
Nutrabolt is a quickly rising, world lively well being and wellness firm with a portfolio of manufacturers, together with C4® Power, one of many fastest-growing efficiency power drink manufacturers within the U.S.; C4® Pre-Exercise, the main pre-workout model globally; and XTEND®, the #1 post-workout restoration model within the U.S.
Underneath the long-term gross sales and distribution settlement, KDP will promote and distribute C4® Power within the overwhelming majority of KDP’s company-owned direct retailer distribution territories, which is predicted to meaningfully improve retail availability and family penetration for the model. Nutrabolt will proceed to distribute C4® Power immediately or by its current distribution community to the specialty, well being membership and health channels and can proceed to work with a few of its current beverage distributors in sure markets.
KDP will make a money funding in Nutrabolt of $863 million, or roughly $740 million internet of anticipated money tax advantages, in alternate for most popular fairness with a 5% annual coupon paid in money or in-kind. The funding offers KDP with an possession stake of roughly 30%, making KDP the biggest investor in Nutrabolt behind its Founder, Chairman and CEO, Doss Cunningham. Internet of the anticipated money tax advantages, the funding represents a a number of under 4x estimated 2023 internet gross sales, that are anticipated to be above $650 million. KDP additionally has the chance to earn extra fairness tied to in-market execution and may have illustration on the Nutrabolt board. As well as, the partnership offers KDP with rights to additional improve its possession stake beneath varied capital elevating situations.
Commenting on the announcement, Chairman and CEO Bob Gamgort acknowledged, “This partnership represents a win-win transaction between our two corporations. KDP positive aspects important presence within the quickly rising efficiency power drink market and Nutrabolt positive aspects entry to a strategic investor with intensive gross sales and distribution capabilities to additional speed up its development. We imagine that bringing collectively the sources, expertise and experience of each corporations will speed up innovation and development and drive important worth creation over time.”
Cunningham stated, “We’re extraordinarily pleased with this enterprise and the staff members who constructed it from the bottom up and, with the belongings and expertise that KDP brings to the desk, we’re extra assured than ever in regards to the route of the corporate and our imaginative and prescient for the long run. This strategic partnership will supercharge C4 Power’s present development trajectory by accelerating family penetration, enhancing distribution and strengthening our total business capabilities. We can even be partnering with a proficient and bold management staff who shares our values, our aggressive spirit and has the same philosophy of disciplined development and maximizing total worth creation.”
“Over the previous 20 years, Nutrabolt has grown from a bootstrap startup to grow to be one of many quickest rising world lively well being and wellness corporations on this planet,” Cunningham continued. “That is a tremendous second for our firm, and it’s due to the unbelievable contributions of our staff members, business companions and people who have financially backed us over time, particularly MidOcean Companions, and CPG veterans and fairness buyers Brian Goldberg and Clayton Christopher.”
The transition of C4® Power distribution to KDP will happen throughout 2023, which is predicted to be a transition and funding 12 months, with restricted impression on KDP monetary outcomes till 2024, when KDP expects the strategic partnership to grow to be accretive to its monetary outcomes.
Extra data concerning the partnership will likely be mentioned at KDP’s beforehand introduced hearth chat on Dec. 15, 2022, at 2:30 p.m. (ET), hosted by Fairness 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 monetary advisors to Nutrabolt with Goodwin Procter LLP, Giannuzzi Lewendon LLP and Kirkland & Ellis LLP serving as authorized advisors.
Steve Alexander (Buyers)
T: 972-673-6769 / [email protected]
Chethan Mallela (Buyers)
T: 646-620-8761 / [email protected]
Katie Gilroy (Media)
T: 781-418-3345 / [email protected]
About Keurig Dr Pepper
Keurig Dr Pepper (KDP) is a number one beverage firm in North America, with annual income approaching $13 billion and roughly 27,000 workers. KDP holds management positions in delicate drinks, specialty espresso and tea, water, juice and juice drinks and mixers, and markets the #1 single serve espresso brewing system within the U.S. and Canada. The Firm’s portfolio of greater than 125 owned, licensed and associate manufacturers is designed to fulfill just about any client want, any time, and contains Keurig®, Dr Pepper®, Inexperienced Mountain Espresso Roasters®, Canada Dry®, Snapple®, Bai®, Mott’s®, CORE® and The Authentic Donut Store®. By way of its highly effective gross sales and distribution community, KDP can ship its portfolio of cold and hot drinks to just about each level of buy for shoppers. The Firm is dedicated to sourcing, producing and distributing its drinks responsibly by its Drink Effectively. Do Good. company duty platform, together with efforts round round packaging, environment friendly pure useful resource use and provide chain sustainability. For extra data, go to www.keurigdrpepper.com.
Nutrabolt is a fast-growing, world lively well being and wellness firm with a portfolio of market main performance-oriented manufacturers that energize and gas lively existence. The corporate’s disruptive and revolutionary merchandise compete within the Purposeful Beverage and Lively Diet segments, beneath three consumer-loved manufacturers: C4® (one of many fastest-growing power drink manufacturers in america and the #1 promoting world pre-workout model), XTEND® (the #1 post-workout restoration model in america), and Cellucor® (an award-winning sports activities diet model created in 2002).
Since its founding 20 years in the past, Nutrabolt has got down to meet the discerning wants of efficiency athletes and health fans, whereas interesting past this core group to incorporate shoppers across the globe who’re making wholesome, lively residing a each day precedence.
Nutrabolt’s portfolio, which is distributed in over 125 international locations, is offered by company-owned DTC platforms, Amazon, and different third-party e-commerce marketplaces, and is on the market at main retailers throughout the U.S., together with Walmart, Goal, 7-Eleven, Walgreens, Kroger, H-E-B, Wawa, Publix, GNC, and the Vitamin Shoppe. For extra details about Nutrabolt, please go to www.nutrabolt.com.
FORWARD LOOKING STATEMENTS
Sure statements contained herein are “forward-looking statements” inside the that means of relevant securities legal guidelines and rules. These forward-looking statements can typically be recognized by means of phrases comparable to “outlook,” “steerage,” “anticipate,” “anticipate,” “imagine,” “might,” “estimate,” “really feel,” “forecast,” “intend,” “could,” “plan,” “potential,” “undertaking,” “ought to,” “goal,” “will,” “would,” and related phrases. Ahead-looking statements by their nature tackle issues which are, to completely different levels, unsure, comparable to statements concerning the anticipated future outcomes of KDP’s strategic partnership with Nutrabolt, the anticipated advantages of the partnership (together with KDP’s anticipated tax advantages), future impacts on KDP monetary outcomes, and different statements that aren’t historic details. These statements are primarily based on the present expectations of KDP’s administration, should not predictions of precise efficiency, and precise outcomes could differ materially.
Ahead-looking statements are topic to quite a few dangers and uncertainties, together with the components disclosed in KDP’s Annual Report on Type 10-Okay and subsequent filings with the SEC. KDP is beneath no obligation to replace, modify or withdraw any forward-looking statements, besides as required by relevant legislation.
SOURCE Keurig Dr Pepper Inc.; Nutrabolt
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