Keurig Dr Pepper has struck a deal to acquire energy-drink maker Ghost for more than $1 billion, The Wall Street Journal reported Thursday, citing people familiar with the matter.

The deal is expected to be announced later in the day when Keurig reports its quarterly results, the report said.

Ghost was founded as a lifestyle sports nutrition brand in 2016 by Dan Lourenco and Ryan Hughes. In 2020, according to the report, Ghost teamed up with Anheuser-Busch InBev to launch Ghost Energy.

Keurig is expected to make an initial cash investment of about $990 million in exchange for a 60% ownership stake in Ghost, the WSJ report said, adding that the company would acquire the remaining stake in 2028.

Ghost and Keurig Dr Pepper did not immediately respond to a Reuters request.

The U.S. energy drinks market has seen growing demand in recent years as more customers turn health conscious and look for products that help boost physical strength.

Keurig Green Mountain and Dr Pepper Snapple Group had combined in 2018 through a deal worth more than $21 billion to bring together brands such as Green Mountain Coffee, 7UP, Snapple and Sunkist under one roof.

This helped the company better position itself to compete with soda giants such as Coca-Cola and PepsiCo in the North American region.

In 2022, PepsiCo paid $550 million for an 8.5% stake in energy drink maker Celsius Holdings, while Keurig Dr Pepper acquired a 30% stake in Nutrabolt, the maker of energy drink brand C4 Energy, for $863 million.