Keurig Dr Pepper Takes Stake in Nutrabolt, Inks Distribution Deal

By Will Feuer

Keurig Dr Pepper Inc. said it has agreed to buy a 30% stake in Nutrabolt, the company behind energy drinks such as C4 and Xtend, for $863 million, and has entered into a long-term sales and distribution agreement.

Keurig will sell and distribute C4 Energy in the majority of its company-owned direct store distribution territories, which is expected to meaningfully increase availability and penetration for the brand. Nutrabolt will continue to distribute C4 Energy directly and through its existing distribution network to the specialty, health club and fitness channels, the companies said.

The cash investment from Keurig, expected to close this month, would make the company Nutrabolt's second-largest investor, only behind Nutrabolt Founder, Chairman and Chief Executive Doss Cunningham. Keurig would get preferred equity in privately-held Nutrabolt with a 5% annual coupon paid in cash or in-kind.

Keurig would have the opportunity to earn more equity based on in-market execution and would get representation on the Nutrabolt board.

The deal puts the value of Nutrabolt at at least $2.87 billion, based on Keurig's roughly 30% stake. Nutrabolt is expected to post 2023 sales of at least $650 million, the companies said.

The North American energy-drinks market has grown rapidly in recent years. Nutrabolt is backed by private-equity firm MidOcean Partners as well as consumer-packaged goods veterans Brian Goldberg and Clayton Christopher, Mr. Doss said.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

December 08, 2022 09:44 ET (14:44 GMT)

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