Dr Pepper Snapple to acquire Bai Brands for $1.7bn
Dr Pepper Snapple says Bai Brands ‘provides a strong platform to incubate and grow better-for-you beverages’ in both the carbonated and non-carbonated beverage categories.
Bai Brands’ portfolio of premium beverages spans across high-growth categories such as enhanced water, carbonated flavored water, coconut water and premium RTD teas.
Its antioxidant-infused products include Bai, Bai Bubbles, Cocofusion and Antiwater.
“With its innovative brands, Bai is positioned for expanding growth in key beverage segments,” said Dr Pepper Snapple in a statement this morning.
“These highly profitable categories are projected to continue to grow worldwide for the foreseeable future.
“Bai Brands is expected to generate $425m in net sales in 2017; and add an incremental $132m to our current net sales expectation for 2017.”
Dr Pepper Snapple
“The acquisition of Bai will further enable us to meet growing consumer demand for better-for-you beverages.”
Bai Brands will operate within Dr Pepper Snapple’s Packaged Beverages segment with founder Ben Weiss continuing to lead the team.
Dr Pepper Snapple already has a minority stake in Bai Brands and distributes Bai products.
Ben Weiss, founder, said: "We've worked tirelessly to challenge the notion that better-for-you beverages can't taste good. On our journey, we found a strong ally in DPS, an ally who embraced our mission to change the way the world drinks.
"Now, it only makes sense to continue our quest together.”
The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions. It has been approved by the boards of both companies.
At a glance: Bai Brands
Founded in 2009 by Ben Weiss
Flagship Bai and Bai Bubbles lines offer ‘fresh fruit flavor and antioxidants with no artificial sweeteners and 5 calories / 1g sugar per serving’
Named one of Inc.’s 500 fastest-growing private companies in 2014
Named one of America’s 20 Most Promising Companies by Forbes in 2015
Dr Pepper Snapple invested $15m in a minority stake in Bai Brands in 2015.