Keurig Dr Pepper (KDP) has entered into a definitive agreement to acquire Ghost, a sports nutrition brand specializing in energy drinks and more. Ghost’s net sales have more than quadrupled over the past three years, and Ghost Energy has become one of the fastest-growing energy brands.
 
Under the terms of the agreement, KDP will initially purchase a 60% stake in Ghost, which will be followed by the acquisition of the remaining 40% stake in 2028. The transaction is subject to customary closing conditions, with the initial step expected to close in late 2024 or early 2025.
 
Ghost will continue to be led by co-founders Dan Lourenco and Ryan Hughes, and will operate as part of KDP’s U.S. refreshment beverages segment.
 
KDP’s energy portfolio will tentatively include lifestyle, performance, and other types of occasions in the category. Ghost also has positions in supplements and other liquid refreshment beverages.
 
“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,” said Tim Cofer, KDP CEO. “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.” 
 
“The energy category is poised for continued long-term growth, which KDP expects to increasingly capture through our platform-based approach,” Cofer continued. “KDP’s portfolio of complementary energy brands is aligned against distinctive consumer need states, and, together, these offerings will unlock significant growth and scale benefits across our entire DSD portfolio.”
 
“We could not be more excited to build the future of GHOST together with KDP,” said Lourenco. “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.”
 
KDP will fully consolidate Ghost into its financial results upon close and expects the transaction to be neutral to modestly accretive to adjusted EPS starting in 2025. In the first phase, KDP will make an initial cash investment of $990 million in exchange for 60% ownership stake in Ghost. In the second stage of the transaction, KDP will purchase the outstanding 40% stake in 2028 at a pre-negotiated valuation scale that will reflect Ghost’s 2027 financial performance. Starting in mid-2025, KDP also expects to invest up to $250 million to transition Ghost Energy’s existing distribution agreements ahead of beginning to sell and distribute the brand through KDP’s direct store delivery network.