Keurig Dr Pepper will sell its entire equity stake in Chobani back to the yogurt maker for $800 million and transfer an Allentown, Pennsylvania, manufacturing facility and warehouse for approximately $125 million, generating total pre-tax proceeds of $925 million. The company plans to use the net proceeds to reduce debt as it prepares to separate into two publicly traded businesses, Beverage Co. and Global Coffee Co. Chobani will acquire the facility's lease, equipment and operations and plans to offer jobs to manufacturing and warehouse employees, while Keurig Dr Pepper will retain delivery, customer service and corporate workers. Chobani plans to invest roughly $1.2 billion in the Allentown campus over five years and add more than 900 jobs, according to The Wall Street Journal. The companies will continue a defined-period co-manufacturing arrangement and expand Keurig Dr Pepper's distribution of Chobani-owned products, including La Colombe ready-to-drink lattes and future launches. Their existing agreement for La Colombe-branded K-Cup pods in the U.S. and Canada will remain in place. The transactions are expected to close by the end of September, subject to customary conditions. The stake originated in a 2023 exchange in which Keurig Dr Pepper traded its La Colombe holdings for a Chobani position. Keurig Dr Pepper has since agreed to acquire JDE Peet's for $18 billion and is working toward separating its Peet's and Keurig businesses into a standalone coffee company.