Keurig Dr Pepper Merger Provides Growth Opportunities To A Company In A Dying Industry

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About: Keurig Dr Pepper Inc. (KDP), Includes: KO, PEP
by: Ezra Weener
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Ezra Weener
Growth at reasonable price, short-term horizon, small-cap, long/short equity
Summary

Dr Pepper has performed pretty well in the soft drink industry and has the distribution network to help Keurig grow.

While the soft drink industry is going downhill, the coffee market is still strong, this allows the companies to combine strengths.

Even with the 25% stock appreciation, there is room to grow when compared to competitors trading ratios.

Last Monday, as many know, Keurig and Dr Pepper Snapple Group merged to created Keurig Dr Pepper (NYSE:KDP). The terms of the deal paid out a dividend payment of $103.75 per share of