This Week in Quality – January 26, 2026

Keurig Dr Pepper launched its $18 billion acquisition of JDE Peet’s with closing expected in the second quarter of 2026. The FDA mandated ISO 13485 compliance for all medical device manufacturers effective February 2, 2026, harmonizing quality management requirements with international standards. US manufacturers reported a business confidence score of 7.27, the highest since 2017, while machine tool orders totaled $4.92 billion for the first 11 months of 2025.

Keurig Dr Pepper Launches $18 Billion JDE Peet’s Acquisition

Keurig Dr Pepper launched its $18 billion all-cash takeover bid for JDE Peet’s on January 15, 2026, offering €31.85 per share to acquire the Dutch coffee company with closing expected early in the second quarter of 2026 subject to customary conditions. The transaction received competition clearances and unanimous board approval, with shareholders representing 69% of issued shares accepting the offer.

Following the acquisition, Keurig Dr Pepper plans to separate into two independent US-listed companies creating a global coffee powerhouse with approximately $16 billion in annual net sales serving more than 100 countries and a North American beverage company with $11 billion in annual sales. JDE Peet’s generated €8.8 billion in total sales during 2024 and serves approximately 4,400 cups of coffee per second across its portfolio of brands including Peet’s, L’OR, Jacobs, Douwe Egberts and Moccona.

FDA Mandates ISO 13485 Compliance for Medical Device Manufacturers

The FDA’s Quality Management System Regulation requiring ISO 13485:2016 compliance for all medical device manufacturers becomes effective February 2, 2026, replacing the Quality System Regulation that had not undergone significant revision since 1996. The regulation incorporates ISO 13485:2016 by reference and establishes additional requirements clarifying expectations for device quality management systems, with FDA amending 179 sections across 18 parts of Title 21 of the Code of Federal Regulations.

The regulation aligns US requirements with international standards already adopted by regulatory authorities in the European Union, Japan, Australia and Canada, forming the basis for the Medical Device Single Audit Program that allows one audit to satisfy multiple jurisdictions. The FDA removed previous exemptions that prevented inspection of management review records, internal quality audit reports and supplier audit reports, granting the agency access to documentation previously restricted under the Quality System Regulation.

PPG Industries Acquires EMM International and Automotive Refinish Brands

PPG Industries completed the acquisition of EMM International, a Netherlands-based paint preparation, application and workshop systems provider, adding the Colad, Finixa and Hamach brands to its portfolio. The transaction extends PPG’s reach beyond coatings into tools, consumables and equipment used throughout the automotive refinishing process, with EMM operating from headquarters in Zwolle and branches worldwide including Belgium, Germany, France and the United States.

EMM employs more than 120 people and operates a 17,000 square meter warehouse facility with over 10,000 pallet spaces distributing products across automotive, OEM, marine, aviation and decorative markets in more than 100 countries. The company maintains a 450 square meter technical training center in Zwijndrecht, Belgium, and offers more than 1,300 products across 14 professional processes through its three brands serving automotive refinish and industrial customers.

US Machine Tool Orders Reach $437.9 Million in November

New orders for machine tools totaled $437.9 million in November 2025, declining 19.6% from October 2025 but remaining nearly flat at 0.05% below November 2024 levels, with January-November 2025 orders reaching $4.92 billion representing a 17.8% increase over the comparable 11-month period in 2024. The November total remained 26% above typical November levels and marked the largest three-month cumulative order value since May 2022, according to AMT – the Association for Manufacturing Technology.

Primary metal manufacturers reversed a three-month decline by increasing machinery order values in November, while manufacturers of industrial machinery, metalworking machinery, molds and specialty tools increased demand levels following declines across numerous business sectors including contract machine shops and aerospace manufacturers. The current 11-month order value for 2025 exceeds the full 12-month order value for 2024 by 5%, with elevated order activity building since late summer signaling potential manufacturing activity surges throughout 2026.

Manufacturers Report Record Confidence Amid Efficiency and Automation Focus

US manufacturers reported an average business confidence score of 7.27 on a scale of 1-10 for the next six months, representing a 6% increase from May 2025 and the highest optimism level recorded since the Sikich Manufacturing Industry Pulse survey began in 2017. More than half of survey respondents reported consistent or increasing customer demand, with 81% expecting revenue growth in 2026 and operational efficiency emerging as the top strategic priority outpacing cost cutting and innovation.

More than half of manufacturers plan major investments in new equipment and automation over the next 6-12 months, with 30% planning investments in talent development and 28% in AI or data analytics to improve decision-making, forecasting and productivity. Despite challenges including talent acquisition, inflation and tariffs, 58% of respondents expect to increase headcount in the next year driven primarily by demand, with manufacturers focusing on strengthening foundations, modernizing processes, improving margins and positioning for sustainable growth.