Report
Sonia Vora
EUR 101.80 For Business Accounts Only

Dr Pepper Snapple and Keurig Green Mountain Look to Brew Up Gains in Merger; Shares Under Review

We’re placing our fair value estimate for wide-moat Dr Pepper Snapple under review as we further evaluate the impact of the firm’s plan to merge with Keurig Green Mountain (which has been held privately by JAB Holding Company since March 2016), but we surmise the combination is a plus for Dr Pepper shareholders that will likely lead to a more than 10% increase to our valuation (which for the standalone business stands at $92 presently). However, with shares up 25% on the announcement, we don’t t...
Underlying
Dr Pepper Snapple Group Inc.

Dr Pepper Snapple Group is a brand owner, manufacturer and distributor of non-alcoholic beverages in the U.S., Canada and Mexico with a portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, water and mixers. In the CSD market, the company's primary brands are Dr Pepper, Canada Dry, 7UP, Crush, A&W, Sunkist soda, Schweppes and Squirt. In the NCB market segment in the U.S., the company participates primarily in the ready-to-drink tea, juice, juice drinks and mixer categories. The company's segments are: Beverage Concentrates, Packaged Beverages and Latin America Beverages.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Sonia Vora

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