Chobani, a US food and beverage manufacturer best known for its Greek yogurt, is set to acquire a Keurig Dr Pepper (KDP) manufacturing facility and warehouse in Allentown, Pennsylvania, expanding its US manufacturing footprint.
The $125m transaction includes the facility, equipment and operations. Chobani plans to offer employment to the site’s manufacturing and warehouse workforce, helping maintain production and retain an experienced workforce at the facility.
The transaction is part of a wider agreement between the two companies, with Chobani also buying KDP’s equity stake in the company for $800m.
Manufacturing capacity and jobs
The Allentown site will continue to manufacture certain products for KDP for a defined period following the sale under a co-manufacturing agreement. This will help maintain operational continuity as ownership of the facility transitions to Chobani.
For Chobani, the acquisition provides additional manufacturing capacity and an established facility from which to support future growth. The company said the plant will be used to its full potential, creating further opportunities for manufacturing and employment in Pennsylvania.
The deal also means Chobani will take on a trained manufacturing and warehouse workforce already operating at the site.
Employees working in delivery, customer service and other corporate functions will remain with KDP.
Expanding US food and beverage manufacturing
The acquisition builds on Chobani’s wider expansion in the US food and beverage sector, adding an established production facility to its manufacturing network.
The companies will also continue their commercial relationship, with KDP distributing Chobani-owned beverage products through its direct store delivery network. KDP will also continue to manufacture and distribute La Colombe-branded K-Cup pods in the US and Canada.
For Pennsylvania, the deal keeps an established food and beverage manufacturing operation under new ownership while retaining jobs and creating scope for the facility to support Chobani’s future production growth.
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