NEW YORK: Keurig is buying Dr Pepper Snapple Group, bringing together the make-at-home coffee brand with the company behind Dr Pepper soda, Mott’s apple juice and Snapple iced tea.

The new company, Keurig Dr Pepper, plans to expand its bottled iced coffee offerings that are sold at supermarkets and convenience stores. The private company that controls Keurig already owns coffee brands like Stumptown and Peet’s.

Keurig Dr Pepper will offer “hot and cold beverages to satisfy every consumer throughout the day,” said Larry Young, chief executive of Dr Pepper Snapple.

And the combined business will tap into each other’s distribution network, bringing their brands to more stores and online retailers. The companies said they’ll save $600 million a year starting in 2021 by combining warehouse and delivery systems.

The new company will have about $11 billion in annual sales, which still makes it far smaller than soda makers PepsiCo Inc. and Coca-Cola Co., which had 2016 sales of $63 billion and $41 billion, respectively.

But Bernstein analyst Ali Dibadj said he expects more beverage companies to combine to save on distribution costs.

Keurig said Dr Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and keep 13 percent of the combined company. Dr Pepper Snapple shareholders still must approve the deal.

Shares of Dr Pepper Snapple Group Inc. soared 22 percent to $117.07 on Monday.

Keurig Dr Pepper will trade publicly after the deal closes, which is expected to happen in the second quarter. Keurig will stay in its Waterbury, Vt., headquarters, and Dr Pepper Snapple will remain in Plano, Texas.