(Bloomberg) -- Keurig Dr Pepper Inc. agreed to acquire the maker of Ghost energy drinks for more than $1 billion, boosting its portfolio of beverages beyond coffee and sodas.
Keurig will purchase an initial 60% stake in Ghost for $990 million in cash, followed by the remaining 40% in 2028 at a valuation reflecting the brand’s 2027 financial performance, according to a statement Thursday.
It’s the biggest deal for coffee machine maker Keurig since it took over Dr Pepper Snapple Group in 2018 for almost $19 billion in cash, according to the Wall Street Journal, which earlier reported on the deal.
The acquisition includes Ghost Lifestyle LLC, a sports nutrition company created by Dan Lourenco and Ryan Hughes in 2016, and their energy drink offshoot, Ghost Beverages LLC, which was launched with backing from brewer Anheuser-Busch InBev NV. The brand will continue to be led by the two founders.
Ghost has faced criticism from consumer groups contending that it targets children with flavors based on confectionery brands such as Sour Patch Kids. The company says the drinks are free of sugars and low in calories.
Overall, Ghost’s net sales have more than quadrupled over the past three years, according to the companies.
Keurig Dr Pepper on Thursday also reported net sales of $3.89 billion for the third quarter, just below a Bloomberg consensus analyst estimate of $3.92 billion.
Shares of Keurig Dr Pepper, whose drinks brands also include Snapple and Canada Dry, have risen 26% over the past 12 months. In premarket trading on Thursday they fell 2.1%.
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