Dr Pepper Snapple and Keurig announced Monday the companies will enter a merger agreement—forming a new beverage company, Keurig Dr Pepper. Dr Pepper Snapple shareholders will receive $103.75 per share and will retain their shares in Dr Pepper Snapple, according to the news release. Keurig shareholders will hold 87 percent and Dr Pepper Snapple shareholders will hold 13 percent of the combined company. Some of the other brands named in the news release as part of the joining of the two companies include 7UP, A&W, Mott’s and Sunkist and Keurig’s Green Mountain Coffee Roasters. “This transaction will deliver significant and immediate value to our shareholders, along with the opportunity to participate in the long-term upside potential of our combined company and attract new brands and beverage categories to our platform in a fast-changing industry landscape,” Dr Pepper Snapple President and CEO Larry Young said in the news release. “We are excited to combine with Keurig to build on the rich heritage and expertise of both companies and provide the highest-quality hot and cold beverages to satisfy every consumer throughout the day.” Keurig CEO Bob Gamgort will assume the role as CEO of Keurig Dr Pepper, and Ozan Dokmecioglu, current chief financial officer of Keurig, will serve as its chief financial officer, according to the news release. Young, the Dr Pepper Snapple CEO, plans to transition to a role on Keurig Dr Pepper’s board of directors. “Our view of the industry through the lens of consumer needs, versus traditional manufacturer-defined segments, unlocks the opportunity to combine hot and cold beverages and create a platform to increase exposure to high-growth formats,” Gamgort said in the news release. Dr Pepper Snapple is currently headquartered on Legacy Drive in Plano. Keurig and Dr Pepper Snapple will continue to operate out of their respective locations and Gamgort will be based in Burlington, Massachusetts, according to the news release.