Frisco-based beverage company Keurig Dr Pepper is acquiring Chicago-based GHOST Lifestyle LLC and GHOST Beverages LLC in a deal valued at nearly $1 billion. The transaction will initially give KDP a 60% stake in GHOST Energy, a ready-to-drink energy brand.

“GHOST is a differentiated brand with significant growth potential, and we’re excited to partner with its founders to take the business to the next level,” KDP CEO Tim Cofer said in a statement. “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.”

Founded in 2016, GHOST is a lifestyle sports nutrition business with a portfolio anchored by GHOST Energy, a leading ready-to-drink energy brand. KDP said GHOST’s net sales have more than quadrupled over the past three years, and GHOST Energy is one of the fastest-growing brands in the energy category.

“The energy category is poised for continued long-term growth, which KDP expects to increasingly capture through our platform-based approach,” Cofer said. “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.”

Under the terms of the agreement, KDP will acquire the remaining 40% stake in 2028. 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.

‘Our vision of a 100-year brand’

KDP said the proposed acquisition will enhance its presence in the energy drink category, extending its reach to new consumers. KDP’s energy portfolio will now include multiple, powerful brands spanning lifestyle, performance, and other major occasions in the category. In addition to ready-to-drink energy, GHOST also has a presence in supplements and emerging positions in other liquid refreshment beverages.

“We could not be more excited to build the future of GHOST together with KDP,” GHOST CEO and co-founder Lourenco said. “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’re 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.

Detailing the deal

In the first stage of the transaction, KDP said it will make an initial cash investment of roughly $990 million in exchange for the 60% ownership stake in GHOST. In the second stage of the transaction, KDP will buy 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 said it 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 the company’s direct store delivery network.

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