High Energy Investment: Keurig Dr Pepper (KDP) Announces Investment in Nutrabolt
KDP is investing $863 million in Nutrabolt, maker of C4 Energy drink
KDP and Nutrabolt have forged a strategic partnership that includes a definitive agreement for a long-term sales and distribution arrangement. The deal also includes an $863 million investment by KDP in the health and wellness company in exchange for preferred equity and approximately a 30% stake.
The investment, expected to close by the end of the year, will make KDP the largest investor in Nutrabolt after its founder, chairman, and CEO, Doss Cunningham.
Nutrabolt, a global active health and wellness company that just celebrated its 20th anniversary, includes an array of functional beverage and active nutrition offerings. The company’s fitness-forward portfolio includes performance energy drink C4 Energy, C4 Pre-Workout, and post-workout recovery brand XTEND.
The collaboration will enable the beverage and coffee maker company to sell and distribute C4 Energy in its direct store distribution territories, increasing brand availability and growth, while Nutrabolt will continue to distribute its products directly or through its health club and fitness channels.
KDP Chairman and CEO Bob Gamgort described the latest collaboration as a win-win for both companies.
“KDP gains significant presence in the rapidly growing performance energy drink market and Nutrabolt gains access to a strategic investor with extensive sales and distribution capabilities to further accelerate its growth,” Gamgort said in a statement. “We believe that bringing together the resources, talent and expertise of both companies will accelerate innovation and growth and drive significant value creation over time.”
According to Nutrabolt’s CEO, the new partnership has solidified the company’s direction and vision for the future.
“Over the past 20 years, Nutrabolt has grown from a bootstrap startup to become one of the fastest growing global active health and wellness companies in the world,” Cunningham said. “This is an amazing moment for our company, and it is because of the incredible contributions of our team members, commercial partners and those who have financially backed us over the years, namely MidOcean Partners, and CPG veterans and equity investors Brian Goldberg and Clayton Christopher.”
Bryan Spillane, Equity Analyst with BofA Securities, will host a fireside chat to discuss the new partnership on Dec. 15, 2022, at 2:30 p.m.
