Keurig Green Mountain CEO Bob Gamgort knows that a newly announced buyout with beverage giant Dr Pepper Snapple might at first raise a few eyebrows.

"That's actually part of the excitement about this," Gamgort told CNBC's "Squawk on the Street" on Monday. "It's not intuitive at first, but as people learn about it they're going to realize that this makes total sense."

Gamgort, who has been CEO of the coffee and beverage appliance maker since May 2016, says one of the biggest reasons for the buyout is that Keurig will gain access to Dr Pepper's nationwide distribution system.

While Keurig expands its e-commerce presence, Gamgort said a "sophisticated" distribution network is a necessity when building national beverage brands.

"The combination of those two allows us to get to anywhere consumers are shopping," he said.

The two companies will emerge from the buyout as a single entity with about $11 billion in annual revenue, and with shareholder ownership split 87 percent to 13 percent in Keurig's favor. Dr Pepper's stock skyrocketed 25 percent after the news.