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Dr Pepper Snapple to buy Bai Brands for $1.7bn

Published 23 November 2016

Flavored beverages producer Dr Pepper Snapple (DPS) has agreed to acquire Bai Brands for $1.7bn.

The deal also includes Bai Brands' complete portfolio of antioxidant infused beverages.

Dr Pepper Snapple plans to complete the acquisition using new unsecured notes and short term commercial paper.

Bai Brands, which was established in 2009, offers a family of better-for-you beverages.

The company's product portfolio spans across various beverage categories including enhanced water, carbonated flavored water, coconut water and ready-to-drink teas.

The company's Bai and Bai Bubbles lines offer fruit flavor and antioxidants with zero artificial sweeteners and just 5 calories and 1 gram of sugar per serving.

Dr Pepper expects Bai to generate about $425m of revenue in 2017 and add an incremental $132m to its existing net sales expectation for 2017.

Dr Pepper Snapple president and CEO Larry Young said: "We're excited to welcome Bai into our family of great brands. In a relatively short time, Bai has carved out a leadership position in the enhanced water category and has now extended that success into other fast-growing and profitable categories.

“We're equally impressed with their innovation pipeline, which will continue to meet the needs of consumers seeking great tasting, low-calorie beverages with natural flavors and no artificial sweeteners."

Bai Brand founder Ben Weiss said: "Over the past seven years, Bai has proven to be an agent of change in a marketplace that is rapidly evolving.

"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.

Image: Dr Pepper Snapple to acquire Bai Brands. Photo: Courtesy of Dr Pepper Snapple Group.