US beverage company Keurig Dr Pepper has agreed to acquire an initial 60% stake in GHOST Lifestyle and GHOST Beverages (collectively GHOST) for a price of around $990m.
GHOST, which was founded in 2016, operates as a lifestyle sports nutrition firm. Its flagship product is GHOST Energy, a ready-to-drink energy brand.
According to Keurig Dr Pepper, GHOST will operate under the former’s US refreshment beverages segment. However, the lifestyle sports nutrition business will be continued to be overseen by its co-founders Ryan Hughes and Dan Lourenco.
Keurig Dr Pepper eventually plans to take over GHOST by acquiring the remaining 40% in 2028 at a pre-negotiated valuation scale. The consideration for this will align with GHOST’s financial performance in 2027.
Lourenco, who is also the CEO of GHOST, said: “We could not be more excited to build the future of GHOST together with KDP. As we thought about our company’s next chapter, KDP’s track record of cultivating disruptive brands, similar challenger mindset, and shared vision for the energy category and beyond made it the right home for our brand and team.
“We are excited to pair KDP’s insights and capabilities with our products and people and know that together we will continue to scale and build GHOST towards our vision of a 100 year brand.”
From mid-2025 onwards, Keurig Dr Pepper plans to invest up to $250m for transitioning the existing distribution agreements of GHOST Energy before starting to sell and distribute the energy drink brand through its direct store delivery network.
Through the deal, Keurig Dr Pepper aims to significantly improve its footprint in the energy drink segment, expanding its reach to new consumers.
Apart from the ready-to-drink energy, GHOST also maintains a presence in supplements. The company also sells others liquid refreshment beverages.
This year, GHOST forayed into the food business by introducing high-protein cereals. Overall, GHOST’s products are said to be available at select global retailers in more than 40 countries.
Keurig Dr Pepper CEO Tim Cofer said: “GHOST is a differentiated brand with significant growth potential, and we are excited to partner with its founders to take the business to the next level.
“This acquisition strengthens our position in the attractive energy drink category, accelerating our portfolio evolution toward consumer-preferred, growth-accretive spaces through a disciplined deal structure.”
Subject to closing conditions, the initial acquisition is anticipated to close either in late 2024 or early 2025.
