Peet's Coffee parent company sold for $18 billion to Keurig Dr. Pepper

A new coffee giant could be brewing.

The American beverage firm Keurig Dr. Pepper plans to buy JDE Peet’s, the European parent company of California’s gourmet coffee trailblazer, Peet’s Coffee, in an all-cash transaction worth about $18 billion.

Keurig Dr. Pepper will be split into two independent companies , one of which will focus on coffee, according to a Monday release.

The new coffee company will be called Global Coffee Co. and will be publicly traded in the U.S., as will the beverage company, which will be called Beverage Co. Global Coffee Co. will have approximately $16 billion in combined annual sales and Beverage Co. will have more than $11 billion in annual net sales, the release said.

“Today’s announcement marks a transformational moment in the beverage industry,” said Keu