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Keurig Dr Pepper KDP.O has reached a deal to acquire energy drink maker Ghost for more than $1 billion, The Wall Street Journal reported Thursday, citing people familiar with the matter.
The deal is expected to be announced later today when Keurig reports its quarterly results, according to the report.
Ghost was founded as a sports nutrition brand in 2016 by Dan Lourenco and Ryan Hughes. In 2020, according to the report, Ghost partnered with Anheuser-Busch InBev to launch Ghost Energy.
Keurig is expected to make an initial cash investment of approximately $990 million in exchange for a 60% stake in Ghost, according to the WSJ report, adding that the company would acquire the remaining stake in 2028.
Ghost and Keurig Dr Pepper did not immediately respond to a Reuters request.
The U.S. energy drink market has seen growing demand in recent years as more consumers are health-conscious and seek products that help them increase their physical strength.
Keurig Green Mountain and Dr Pepper Snapple Group merged in 2018 in a deal worth more than $21 billion to bring brands including Green Mountain Coffee, 7UP, Snapple and Sunkist under one roof .
This move allowed the company to better position itself to compete with soda giants such as Coca-Cola and PepsiCo in the North American region.
In 2022, PepsiCo paid $550 million for an 8.5% stake in energy drink maker Celsius Holdings, while Keurig Dr Pepper acquired a 30% stake in Nutrabolt, the maker of the energy drink brand C4 Energy, for $863 million.
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