Dr Pep­per buys Bai for $1.7B

Daily Local News (West Chester, PA) - - BUSINESS -

NEW YORK >> Dr Pep­per Snap­ple Group will pay $1.7 bil­lion for Bai Brands, a fruity drink maker that counts pop star Justin Tim­ber­lake as an in­vestor.

It said Tues­day that Bai will help the com­pany ex­pand into the low-calo­rie beverage mar­ket. Bai mar­kets its drinks as hav­ing 5 calo­ries, an­tiox­i­dants and no ar­ti­fi­cial sweet­en­ers. Dr Pep­per Snap­ple’s brands in­clude its name­sake Dr Pep­per soda, A&W root beer and Canada Dry gin­ger ale.

Bai an­nounced in Oc­to­ber that Tim­ber­lake was an in­vestor, but didn’t pro­vide fi­nan­cial details. The “SexyBack” singer said at the time that he was a fan of the drinks and would work on new fla­vors and mar­ket­ing cam­paigns for the brand.

Dr Pep­per Snap­ple Group Inc., based in Plano, Texas, ex­pects Bai to gen­er­ate about $425 mil­lion in sales next year.

THE AS­SO­CI­ATED PRESS

Dr Pep­per Snap­ple Group Inc. an­nounced Tues­day that the com­pany is pay­ing $1.7 bil­lion for Bai Brands, a fruity drink maker that counts pop star Justin Tim­ber­lake as an in­vestor.

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