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.
Breaking news and the stories that matter to your neighborhood.
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. [[375547511, C]]