The Keurig Green Mountain and Dr Pepper Snapple merger has commenced, creating new beverage company Keurig Dr Pepper (KDP).

Expected to have annual revenues of nearly $11bn, KDP will operate more than 120 offices, manufacturing plants, warehouses and distribution centres across North America.

The new entity’s brands will include Keurig, Dr Pepper, Green Mountain Coffee Roasters, Canada Dry, Snapple, Bai, Mott’s and The Original Donut Shop.

The move follows an initial definitive merger agreement signed by the companies in January this year.

“The move follows an initial definitive merger agreement signed by the companies in January this year.”

Keurig Dr Pepper CEO Bob Gamgort said: “The combination of these two great companies creates the scale, portfolio and selling and distribution capabilities to compete differently in the beverage industry.

“With a large stable of iconic brands and the leading single-serve coffee brewing system on the market, KDP has the ability to satisfy any beverage need or consumption occasion, hot or cold, at work or at play, at home or on the go, and the capability to get our brands to consumers virtually anytime and anywhere they purchase beverages.”

Under the deal, Dr Pepper Snapple shareholders will receive a special cash dividend of $103.75 per share.

KDP will have dual headquarters in Burlington, Massachusetts, and in Plano, Texas.

Keurig Green Mountain and Dr Pepper Snapple will continue to operate out of their existing locations.

The combined company is set to draw on the leadership teams of both firms, which will continue running their respective businesses.