Dr Pepper Snapple Group Inc. (DPS), Plano, Texas, has reached an agreement to acquire Bai Brands LLC, Princeton, N.J., and its complete portfolio of high-growth premium antioxidant-infused beverages. The cash purchase price of $1.7 billion includes a tax benefit of approximately $400 million on a net present-value basis and will be financed through new unsecured notes and short-term commercial paper, the company says.
DPS stated that it expects to maintain its strong investment-grade credit profile and has no plans to change its existing shareholder dividends and share repurchase distributions.