Keurig Dr Pepper Inc. (NASDAQ: KDP) and Chobani announced a series of transactions valued at $925 million in pre-tax proceeds, according to a press release issued Sept. 1, 2026.

Under the agreement, KDP will sell its full equity stake in Chobani back to the company for $800 million. In a related transaction, Chobani will acquire KDP's manufacturing facility and warehouse in Allentown, Pennsylvania for approximately $125 million, covering the facility lease, equipment and operations.

KDP said it intends to use the net proceeds to reduce debt as it prepares to separate into two businesses, Beverage Co. and Global Coffee Co.

Chobani said it intends to offer employment to the Allentown site's manufacturing and warehouse employees. Employees in delivery, customer service and other corporate functions will remain with KDP. Following the sale, Chobani will continue to manufacture certain products for KDP at the Allentown facility under a co-manufacturing agreement for a defined period.

The companies also announced an expansion of their existing distribution agreement. KDP will continue to distribute the La Colombe brand's ready-to-drink lattes and other Chobani-owned beverage products through its direct store delivery network, including future ready-to-drink innovations. The existing long-term licensing, manufacturing and distribution agreement for La Colombe-branded K-Cup pods in the U.S. and Canada will also continue.

"These transactions reflect the success of our partnership with Chobani and are designed to create value for both organizations," said Tim Cofer, CEO of Keurig Dr Pepper.

The transactions are expected to close in the third quarter of 2026, subject to customary closing conditions.