Keurig Dr Pepper takes majority stake in energy-drink maker Ghost for $990 million

(Reuters) -Keurig Dr Pepper is buying a 60% stake in energy-drink maker Ghost for $990 million, with a plan to purchase the rest in 2028, the companies said on Thursday.

Ghost, founded as a lifestyle sports nutrition brand in 2016 by Dan Lourenco and Ryan Hughes, will continue to be led by its co-founders and operate as part of Keurig Dr Pepper’s U.S. refreshment beverages segment.

The initial purchase is expected to close in late 2024 or early 2025.

The U.S. energy drinks market has seen growing demand in recent years as more customers turn health conscious and look for products that can help boost physical strength.

Keurig Green Mountain and Dr Pepper Snapple Group (NASDAQ:KDP) had combined in 2018 through a deal worth more than $21 billion to bring together brands such as Green Mountain Coffee, 7UP, Snapple and Sunkist under one roof.

This helped the company better position itself to compete with soda giants such as Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP) in the North American region.

In 2022, PepsiCo paid $550 million for an 8.5% stake in energy drink maker Celsius Holdings (NASDAQ:CELH), while Keurig Dr Pepper acquired a 30% stake in Nutrabolt, the maker of energy drink brand C4 Energy, for $863 million.