Keurig Dr Pepper plans $925 million Chobani exit ahead of split

Keurig Dr Pepper is selling its minority stake in Chobani for $800 million and divesting a manufacturing facility in Allentown, Pa., for $125 million, in a total package of $925 million aimed at reducing debt ahead of its planned corporate split. The deal features $400 million in cash at closing and a $400 million promissory note from Chobani, with closing anticipated in the third quarter of 2026. Chobani will acquire the Allentown plant and related lease and equipment, while Keurig Dr Pepper will continue a co-manufacturing arrangement to produce certain items for Keurig Dr Pepper at that site for a defined period. Proceeds from the sale will be used to de-leverage as the company moves forward with separating its beverage and coffee-focused units into two publicly traded entities. Despite the divestiture, the two companies will maintain a close and continuing partnership, including ongoing distribution and licensing agreements for La Colombe products and other Chobani-branded beverages. The transactions reflect the strategic aim to simplify KDP’s portfolio, free up capital for core growth opportunities, and keep operational links with Chobani as both firms pursue their respective expansion plans.