Supplements brand Ghost acquired by Keurig Dr Pepper for $1.5b
Keurig Dr Pepper has announced a definitive agreement to acquire a 60% stake in GHOST Lifestyle LLC and GHOST Beverages LLC, collectively known as "GHOST". Founded in 2016, GHOST is a lifestyle sports nutrition brand featuring the popular GHOST Energy, a rapidly growing name in the ready-to-drink energy sector known for its unique identity and flavour offerings.
Transaction snapshot
Deal value: US$990 million (AUD $1.50 billion) for initial 60% stake
Deal multiples: Approximately 3x net revenue on a 2024 projected basis
Deal type: Majority acquisition with subsequent full acquisition
Investors: Keurig Dr Pepper (KDP)
Under the agreement, KDP will initially purchase 60% of GHOST, followed by the remaining 40% in 2028, with a valuation based on GHOST's 2027 financial performance. This two-phase acquisition is expected to close by late 2024 or early 2025, subject to regulatory approval. GHOST’s co-founders, Dan Lourenco and Ryan Hughes, will continue to lead the brand, which will become part of KDP’s U.S. Refreshment Beverages segment.
GHOST has experienced robust growth, with net sales quadrupling over the last three years, particularly within the energy category. Alongside ready-to-drink products, GHOST also produces a range of sports supplements, catering to consumers from fitness to e-sports. The acquisition will support KDP’s energy drink portfolio, adding GHOST to its existing collection of brands that meet a range of lifestyle and performance needs. This acquisition aligns with KDP's platform-based approach, aimed at capturing growth opportunities across its direct-store-delivery (DSD) network.
KDP plans to invest up to $250 million (AUD $379 million) from mid-2025 to transition GHOST Energy’s distribution agreements to its own network, setting the stage for GHOST’s expanded reach. The acquisition is expected to be neutral to modestly accretive to KDP's adjusted EPS starting in 2025.
Tim Cofer, KDP's CEO, commented on the acquisition, expressing enthusiasm for GHOST’s growth potential and the strategic fit within KDP’s portfolio. GHOST’s CEO Dan Lourenco shared optimism about scaling the brand with KDP’s extensive resources and shared vision for the future.
KDP's net sales grew 2.3% to $3.9 billion in Q3 2024, with full-year net sales reaching $11.3 billion, up 3% year-on-year. The transaction continues KDP’s focus on the rapidly expanding energy drinks sector, building on its recent investments, including a 2022 partnership with Nutrabolt, makers of C4 Energy, where KDP acquired a 30% stake for US$863 million (AUD $1.31 billion).
