Soda giant Dr Pepper Snapple Group Inc. has agreed to purchase New Jersey's fast-growing Bai Brands for $1.7 billion.
Bai Brands was started in a Princeton basement in 2009 and specializes in coffee-fruit drinks. The drink maker's all-natural, 5-calorie drinks are produced from coffee fruit — the antioxidant-rich outer shell of coffee beans.
Dr Pepper Snapple officials say the acquisition will help the company expand into the low-calorie beverage market.
Bai will operate within Dr Pepper Snapple's packaged beverages segment. CEO Ben Weiss will continue to lead the Bai brand, which is estimated to generate $425 million in sales next year.
The deal is expected to close in early 2017.
Bai Brands partnered with Texas-based Dr Pepper Snapple Group to expand its national distribution in 2013.