La Colombe Cafe in Philadelphia, Pennsylvania.
La Colombe Coffee Roasters will sell a 33% stake to Keurig Dr Pepper in an agreement that will supply its RTD products and K-Cup pods via the big corporate's distribution network in North America. The $300 million investment represents a multiple of approximately three times La Colombe's estimated 2024 consolidated net sales.
Founded in 1994 and based in Philadelphia, La Colombe describes itself as a vertically integrated, ready-to-drink coffee company that owns "the entire coffee journey from conscious bean sourcing and premium roasting to the creation of exceptional product experiences." It owns and operates 32 cafes in major cities in the United States and sells blends, single origin coffees, and RTD through cafes, hotels, restaurants and retailers around the world.
The company's majority owner will continue to be its chairman, Hamdi Ulukaya, whose founding of leading U.S. yogurt brand Chobani in 2007 soon made him a billionaire. He invested in La Colombe in 2015. The company will use the investment proceeds to pay down debt and accelerate growth.
"I joined the La Colombe journey eight years ago because I believe in its mission, quality, craftsmanship and social impact – and that everyone deserves quality, crafted, natural coffee," said Ulukaya. "With this partnership we'll be closer to fulfilling the mission of providing exceptional coffee to all."
Keurig Dr Pepper has annual revenue of more than $14 billion and approximately 28,000 employees. Its coffee and tea businesses include the K-Cup single serve brewing system and Green Mountain Coffee Roasters.
"We are excited to partner with Hamdi and the La Colombe team to drive value for both companies," said KDP chairman and CEO Bob Gamgort. "This partnership will enable KDP to expand its reach into high growth ready-to-drink and super premium coffee segments and will meaningfully increase La Colombe's availability to consumers."
The deal is expected to close during the year's third quarter.