NEW YORK (TheStreet) -- Coke (KO) - Get Report has announced that it will pay Dr Pepper Snapple (DPS) $715 million for rights to distribute certain Dr Pepper Snapple brands following the completion of Coke's planned acquisition of Coca-Cola Enterprises' (CCE) North American bottling business.
Under the agreements, Coke will make a one-time cash payment of $715 million to distribute Dr Pepper and certain other Dr Pepper Snapple brands in the U.S. and Canada, where they are currently being distributed by Coca-Cola Enterprises. These brands include Dr Pepper trademark brands and Canada Dry.
The new license agreement will have an initial term of 20 years, with 20-year renewal periods. This license agreement will replace the existing agreements between Dr Pepper Snapple and Coca-Cola Enterprises upon the completion of Coke's acquisition of the latter's North American bottling business.
The closing of the Coca-Cola Enterprises acquisition is expected to occur in the fourth quarter of this year.
-- Reported by Andrea Tse in New York
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