Keurig Dr Pepper to Sell Stake in Chobani

Paul, Weiss is advising Keurig Dr Pepper Inc. on a series of transactions with Chobani that will net $925 million in pre-tax proceeds and enhance KDP’s long-term commercial relationship with Chobani. Under the agreements, KDP will sell its full equity stake in Chobani back to the company for $800 million and sell its manufacturing facility and warehouse in Allentown, Pennsylvania, to Chobani for approximately $125 million. KDP intends to use the proceeds from these transactions to reduce debt as it prepares to separate into two independent businesses, a process on which Paul, Weiss is also advising. KDP and Chobani are additionally expanding their long-term commercial relationship by updating and broadening their distribution agreement. The transactions are expected to close in the third quarter of 2026, subject to customary closing conditions.

The Paul, Weiss team is led by corporate partner Chelsea Darnell and associate Gili Farhadian-Sagiv, and includes partners James Langston, Matthew Leist, Timothy Cruickshank and counsel Deniz Gurbuz; tax partners Robert Holo and Brian Krause, and counsel Alyssa Wolpin; real estate partner Harris Freidus; executive compensation partner Matthew Friestedt and counsel Cindy Akard; intellectual property partner Brianna van Kan; environmental counsel William O’Brien; and litigation counsel Audrey Paquet.