Dr Pepper Snapple completes $1.7bn acquisition of Bai Brands
Flavored beverages producer Dr Pepper Snapple (DPS) has completed the acquisition of Bai Brands for $1.7bn.
The deal, which was signed in November 2106, includes a tax benefit of about $400m, based on net present value.
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.
Bai will now operates as part of DPS's Packaged Beverages segment and will continue to be led by its founder Ben Weiss.
Dr Pepper Snapple president and CEO Larry Young said: "The Bai team has fostered a passionate, winning culture while hitting the bull's-eye in meeting consumers' needs for better-for-you beverages.
"Now that they're part of the DPS family, we're going to let them continue to fly and build on the entrepreneurial spirit that's driven their success while providing them access to the full complement of Dr Pepper Snapple's resources and capabilities."
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.
Texas-based Dr Pepper Snapple serves in the North American and the Caribbean markets. It portfolio includes brands such as Dr Pepper and Snapple along with 7UP, A&W, Bai, Canada Dry, Clamato, Crush, Hawaiian Punch, Mott's, Mr & Mrs T mixers, Peñafiel, Rose's, Schweppes, Squirt and Sunkist soda.