Keurig Dr Pepper (KDP) has reached an agreement with private equity firms to provide funding for its beverage and coffee divisions, both of which will eventually become separate public companies, the Wall Street Journal reports.

Under the deal, KKR and Apollo Global Management will invest $3bn in KDP’s beverage business, which includes brands such as Dr Pepper and 7UP, through preferred stock priced at $37.25 per share, paying an annual preferred dividend.

KKR and Apollo, joined by Goldman Sachs, will also provide $4bn to support a partnership with KDP’s coffee business and a joint venture for global manufacturing of its pod products.

The agreement follows KDP’s $18bn acquisition of Peet’s Coffee owner JDE Peet’s, announced in August, and comes as the company prepares to separate its beverage and coffee operations into two publicly traded entities.

Keurig Dr Pepper is also seeking a new leader for its coffee business after withdrawing a previous appointment.

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