Keurig Dr Pepper will acquire Dutch coffee and tea company JDE Peet’s for about $18 billion, aiming to strengthen its struggling U.S. coffee business.

The deal, which offers JDE Peet’s shareholders a 33% premium, is expected to generate $400 million in cost synergies over three years.

Following the acquisition, Keurig plans to split its beverage and coffee operations into separate U.S.-listed companies, with the coffee unit projected to reach $16 billion in annual sales, CNBC has reported.

JDE Peet’s CEO Rafael Oliveira will remain in his role until the deal closes.