Greek yogurt maker Chobani has acquired La Colombe, a ready-to-drink coffee company for $900 million.

Chobani financed the acquisition through the combination of a newly issued $550 million term loan, cash on hand and the exchange of Keurig Dr Pepper’s minority equity stake in La Colombe into Chobani equity, according to a press release from Chobani.

La Colombe currently serves consumers across multiple channels, including retail, cafes, foodservice and direct-to-consumer. The brand owns its supply chain from bean sourcing and roasting to the finished product.

“We’ve already made an investment in the coffee category with our creamers and are excited about bringing La Colombe into the Chobani family, and offering the delicious, high-quality cold brew and ready-to-drink craftmanship of La Colombe to a next generation of consumers, powered by a strong distribution partner in KDP,” Hamdi Ulukaya, Chobani founder and CEO, said in the press release.

Independent brand

As part of Chobani, La Colombe will continue to operate as an independent brand. This approach allows for collaboration and knowledge sharing between the two companies while preserving the unique identity and innovation of La Colombe.

La Colombe is a growing player in the fast-growing $5 billion U.S. ready-to-drink coffee category, and its offering will prove highly complementary to Chobani’s core yogurt portfolio and modern foods innovations, including oat milk and creamer.

As a result of its superior brand and the consumers’ developing preference for cold coffee, La Colombe’s ready-to-drink line has grown over three-fold in the last five years and is positioned for accelerated growth.