Dr Pepper Snapple Group Inc. (NYSE:DPS) stock was soaring today on news that it will merge with Keurig.

Dr Pepper Snapple Group Inc. says that the merger between it and Keurig will result in the creation of a new company. This new company will go by the name Keurig Dr Pepper. The merger will include a special cash dividend of $103.75 per share for investors.

Dr Pepper Snapple Group Inc. also notes that its shareholders will control 13% of Keurig Dr Pepper once the merger is complete. The remaining 87% of the company will be under the control of Keurig shareholders.

Dr Pepper Snapple Group Inc. says that the combination with Keurig will create a company with pro forma combined 2017 annual revenues of $11 billion. It also notes that the companies are expecting $600 million in annual synergies by 2021.

Once the merger is complete, Bob Gamgort will serve as the CEO of the new company. Gamgort is the current CEO of Keurig. Dr Pepper Snapple Group Inc. CEO Larry Young will join Keurig Dr Pepper’s Board of Directors.

Additional members for Keurig Dr Pepper’s Board of Directors will be chosen by different investors. This includes two independent directors, four chosen by JAB Holding Company, two appointed by Mondelēz International Inc (NASDAQ:MDLZ), and two selected by Dr. Pepper Snapple Group Inc. Gamgort will also serve as an  Executive Member of the Board and JAB’s Bart Becht will be its Chairman.

Dr Pepper Snapple Group Inc. is expecting the merger to close in the second quarter of 2018. However, it will first need approval from regulators and DPS shareholders.

DPS stock was up 24% as of Monday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.