Chobani's founder Hamdi Ulukaya is brewing up a slightly different vision for the Greek yogurt powerhouse.
Late last week, Chobani inked a deal to buy ready-to-drink coffee company La Colombe for $900 million. Chobani financed the purchase with a combination of a $550 million term loan, cash on hand, and exchanging Keurig Dr Pepper's (KDP) minority stake in La Colombe into Chobani equity.
The deal will see Chobani go to battle with giants like Starbucks (SBUX) and Dunkin' Donuts, who dominate the ready-to-drink coffee space in supermarkets and convenience stores. But it will also gain access to one of the top premium coffee players found in specialty stores such as Amazon-owned Whole Foods (AMZN).
Ulukaya said on Yahoo Finance Live he is looking forward to expanding the La Colombe brand and offering consumers a healthier option in ready-to-drink coffee aisles.
The current options have too much sugar, contends Ulukaya.
Ulukaya is no stranger to La Colombe. In 2015, the entrepreneur purchased a majority stake in the company for an undisclosed sum; the newest transaction will make Chobani the sole owner of the coffee brand.
For Ulukaya, the deal marks another milestone moment.
Ulukaya immigrated from Turkey nearly 30 years ago on a student visa with little money. He founded Chobani in 2005.
The company is viewed as the original disrupter in the once stagnant yogurt industry. Chobani has opened up more manufacturing capacity and expanded into new product categories like oat milk and creamers since Ulukaya launched the business.
The company reportedly pulled its IPO plans in late 2022.
Ulukaya didn't rule out an IPO in the future in his interview with Yahoo Finance Live. But he stressed there is no pressing financial reason to go public.
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter/X @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email brian.sozzi@yahoofinance.com.
