diff --git a/.babelrc b/.babelrc
index 69803ca..69ade47 100644
--- a/.babelrc
+++ b/.babelrc
@@ -1,6 +1,6 @@
 {
  "presets": [
-   "react",
-   "es2015"
+   "@babel/react",
+   "@babel/env"
  ]
 }
diff --git a/.gitignore b/.gitignore
index d9618b1..d30cf32 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,3 +3,4 @@ node_modules
 .DS_Store
 lib/
 .idea/
+.build/
diff --git a/.npmignore b/.npmignore
index 7b81124..45d50b3 100644
--- a/.npmignore
+++ b/.npmignore
@@ -2,3 +2,4 @@ src/
 /npm-debug.log*
 .DS_Store
 .idea/
+.build/
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0245459..22bad84 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,12 @@
 # Changelog
 
+## 2.0.0
+* Breaking change: require React ^16.2.0 (for native Fragment support)
+* Breaking change: `react` and `react-com` are now `peerDependencies`.
+* Drop deprecated react-addons-create-fragment from library
+* Update to Babel 7
+* Add Terser to build pipeline for minification
+
 ## 1.1.1
 * Drop deprecated React.createClass, React.DOM from test
 * Bump to allow for React ^16.0.0
diff --git a/circle.yml b/circle.yml
index 6161605..0faacf9 100644
--- a/circle.yml
+++ b/circle.yml
@@ -1,3 +1,10 @@
-machine:
-  node:
-    version: 5.11.1
+version: 2.1
+
+jobs:
+  build:
+    docker:
+      - image: node:lts-slim
+    steps:
+      - checkout
+      - npm install
+      - npm run test
diff --git a/package.json b/package.json
index 00253f3..77e79f5 100644
--- a/package.json
+++ b/package.json
@@ -1,29 +1,43 @@
 {
   "name": "interpolate-components",
-  "version": "1.1.1",
+  "version": "2.0.0",
   "description": "Convert strings into structured React components.",
   "repository": {
     "type": "git",
     "url": "git+https://github.com/Automattic/interpolate-components.git"
   },
-  "main": "lib/index.js",
+  "main": "lib/index.min.js",
   "keywords": [
     "react",
     "react-component",
     "interpolation"
   ],
   "scripts": {
-    "compile": "babel -sd lib/ src/",
-    "prepublish": "npm run compile",
-    "test": "mocha --require babel-register --reporter spec test/test.jsx"
+    "clean": "rimraf .build lib",
+    "compile": "babel --source-maps=inline -d .build/ src/",
+    "minify:index": "terser .build/index.js --compress --mangle --source-map 'content=inline' -o lib/index.min.js",
+    "minify:tokenize": "terser .build/tokenize.js --compress --mangle --source-map 'content=inline' -o lib/tokenize.min.js",
+    "minify": "mkdirp lib && npm run minify:index && npm run minify:tokenize",
+    "build": "npm run clean && npm run compile && npm run minify",
+    "prepare": "npm run build",
+    "test": "mocha --require @babel/register --reporter spec test/test.jsx"
   },
   "devDependencies": {
-    "babel-cli": "^6.9.0",
-    "babel-core": "^6.9.1",
-    "babel-preset-es2015": "^6.9.0",
-    "babel-preset-react": "^6.5.0",
-    "babel-register": "^6.9.0",
-    "mocha": "^2.3.4"
+    "@babel/cli": "^7.5.5",
+    "@babel/core": "^7.5.5",
+    "@babel/preset-env": "^7.5.5",
+    "@babel/preset-react": "^7.0.0",
+    "@babel/register": "^7.5.5",
+    "mkdirp": "^1.0.4",
+    "mocha": "^9.1.3",
+    "react": "^16.2.0",
+    "react-dom": "^16.2.0",
+    "rimraf": "^3.0.2",
+    "terser": "^5.9.0"
+  },
+  "peerDependencies": {
+    "react": ">=16.2.0",
+    "react-dom": ">=16.2.0"
   },
   "bugs": {
     "url": "https://github.com/Automattic/interpolate-components/issues"
@@ -32,11 +46,6 @@
   "directories": {
     "test": "test"
   },
-  "dependencies": {
-    "react": "^0.14.3 || ^15.1.0 || ^16.0.0",
-    "react-addons-create-fragment": "^0.14.3 || ^15.1.0",
-    "react-dom": "^0.14.3 || ^15.1.0 || ^16.0.0"
-  },
   "author": "Bob Ralian <bob.ralian@gmail.com> (http://github.com/rralian)",
   "license": "GPL-2.0"
 }
diff --git a/src/index.es6 b/src/index.es6
deleted file mode 100644
index f0d86f1..0000000
--- a/src/index.es6
+++ /dev/null
@@ -1,127 +0,0 @@
-/**
- * External Dependencies
- */
-import React from 'react';
-import createFragment from 'react-addons-create-fragment';
-
-/**
- * Internal Dependencies
- */
-import tokenize from './tokenize';
-
-let currentMixedString;
-
-function getCloseIndex( openIndex, tokens ) {
-	var openToken = tokens[ openIndex ],
-		nestLevel = 0,
-		token, i;
-	for ( i = openIndex + 1; i < tokens.length; i++ ) {
-		token = tokens[ i ];
-		if ( token.value === openToken.value ) {
-			if ( token.type === 'componentOpen' ) {
-				nestLevel++;
-				continue;
-			}
-			if ( token.type === 'componentClose' ) {
-				if ( nestLevel === 0 ) {
-					return i;
-				}
-				nestLevel--;
-			}
-		}
-	}
-	// if we get this far, there was no matching close token
-	throw new Error( 'Missing closing component token `' + openToken.value + '`' );
-}
-
-function buildChildren( tokens, components ) {
-	var children = [],
-		childrenObject = {},
-		openComponent, clonedOpenComponent, openIndex, closeIndex, token, i, grandChildTokens, grandChildren, siblingTokens, siblings;
-
-	for ( i = 0; i < tokens.length; i++ ) {
-		token = tokens[ i ];
-		if ( token.type === 'string' ) {
-			children.push( token.value );
-			continue;
-		}
-		// component node should at least be set
-		if ( ! components.hasOwnProperty( token.value ) || typeof components[ token.value ] === 'undefined' ) {
-			throw new Error( 'Invalid interpolation, missing component node: `' + token.value + '`' );
-		}
-		// should be either ReactElement or null (both type "object"), all other types deprecated
-		if ( typeof components[ token.value ] !== 'object' ) {
-			throw new Error( 'Invalid interpolation, component node must be a ReactElement or null: `' + token.value + '`', '\n> ' + currentMixedString );
-		}
-		// we should never see a componentClose token in this loop
-		if ( token.type === 'componentClose' ) {
-			throw new Error( 'Missing opening component token: `' + token.value + '`' );
-		}
-		if ( token.type === 'componentOpen' ) {
-			openComponent = components[ token.value ];
-			openIndex = i;
-			break;
-		}
-		// componentSelfClosing token
-		children.push( components[ token.value ] );
-		continue;
-	}
-
-	if ( openComponent ) {
-		closeIndex = getCloseIndex( openIndex, tokens );
-		grandChildTokens = tokens.slice( ( openIndex + 1 ), closeIndex );
-		grandChildren = buildChildren( grandChildTokens, components );
-		clonedOpenComponent = React.cloneElement( openComponent, {}, grandChildren );
-		children.push( clonedOpenComponent );
-
-		if ( closeIndex < tokens.length - 1 ) {
-			siblingTokens = tokens.slice( closeIndex + 1 );
-			siblings = buildChildren( siblingTokens, components );
-			children = children.concat( siblings );
-		}
-	}
-
-	if ( children.length === 1 ) {
-		return children[ 0 ];
-	}
-
-	children.forEach( ( child, index ) => {
-		if ( child ) {
-			childrenObject[ `interpolation-child-${index}` ] = child;
-		}
-	} );
-
-	return createFragment( childrenObject );
-}
-
-function interpolate( options ) {
-	const { mixedString, components, throwErrors } = options;
-
-	currentMixedString = mixedString;
-
-	if ( ! components ) {
-		return mixedString;
-	}
-
-	if ( typeof components !== 'object' ) {
-		if ( throwErrors ) {
-			throw new Error( `Interpolation Error: unable to process \`${ mixedString }\` because components is not an object` );
-		}
-
-		return mixedString;
-	}
-
-	let tokens = tokenize( mixedString );
-
-	try {
-		return buildChildren( tokens, components );
-	} catch ( error ) {
-		if ( throwErrors ) {
-			throw new Error( `Interpolation Error: unable to process \`${ mixedString }\` because of error \`${ error.message }\`` );
-		}
-
-		return mixedString;
-	}
-};
-
-export default interpolate;
diff --git a/src/index.js b/src/index.js
new file mode 100644
index 0000000..f4cddd2
--- /dev/null
+++ b/src/index.js
@@ -0,0 +1,136 @@
+/**
+ * External Dependencies
+ */
+import React, { Fragment } from 'react';
+
+/**
+ * Internal Dependencies
+ */
+import tokenize from './tokenize';
+
+let currentMixedString;
+
+function getCloseIndex( openIndex, tokens ) {
+	const openToken = tokens[ openIndex ];
+	let nestLevel = 0;
+	for ( let i = openIndex + 1; i < tokens.length; i++ ) {
+		const token = tokens[ i ];
+		if ( token.value === openToken.value ) {
+			if ( token.type === 'componentOpen' ) {
+				nestLevel++;
+				continue;
+			}
+			if ( token.type === 'componentClose' ) {
+				if ( nestLevel === 0 ) {
+					return i;
+				}
+				nestLevel--;
+			}
+		}
+	}
+	// if we get this far, there was no matching close token
+	throw new Error( `Missing closing component token \`${ openToken.value }\`` );
+}
+
+function buildChildren( tokens, components ) {
+	let children = [];
+	let openComponent, openIndex;
+
+	for ( let i = 0; i < tokens.length; i++ ) {
+		const token = tokens[ i ];
+		if ( token.type === 'string' ) {
+			children.push( token.value );
+			continue;
+		}
+		// component node should at least be set
+		if (
+			! components.hasOwnProperty( token.value ) ||
+			typeof components[ token.value ] === 'undefined'
+		) {
+			throw new Error( `Invalid interpolation, missing component node: \`${ token.value }\`` );
+		}
+		// should be either ReactElement or null (both type "object"), all other types deprecated
+		if ( typeof components[ token.value ] !== 'object' ) {
+			throw new Error(
+				`Invalid interpolation, component node must be a ReactElement or null: \`${ token.value }\``,
+				'\n> ' + currentMixedString
+			);
+		}
+		// we should never see a componentClose token in this loop
+		if ( token.type === 'componentClose' ) {
+			throw new Error( `Missing opening component token: \`${ token.value }\`` );
+		}
+		if ( token.type === 'componentOpen' ) {
+			openComponent = components[ token.value ];
+			openIndex = i;
+			break;
+		}
+		// componentSelfClosing token
+		children.push( components[ token.value ] );
+		continue;
+	}
+
+	if ( openComponent ) {
+		const closeIndex = getCloseIndex( openIndex, tokens );
+		const grandChildTokens = tokens.slice( openIndex + 1, closeIndex );
+		const grandChildren = buildChildren( grandChildTokens, components );
+		const clonedOpenComponent = React.cloneElement( openComponent, {}, grandChildren );
+		children.push( clonedOpenComponent );
+
+		if ( closeIndex < tokens.length - 1 ) {
+			const siblingTokens = tokens.slice( closeIndex + 1 );
+			const siblings = buildChildren( siblingTokens, components );
+			children = children.concat( siblings );
+		}
+	}
+
+	if ( children.length === 1 ) {
+		return children[ 0 ];
+	}
+
+	return (
+		<Fragment>
+			{ children.map( ( child, index ) => (
+				<Fragment key={ `interpolation-child-${ index }` }>{ child }</Fragment>
+			) ) }
+		</Fragment>
+	);
+}
+
+function interpolate( options ) {
+	const { mixedString, components, throwErrors } = options;
+
+	currentMixedString = mixedString;
+
+	if ( ! components ) {
+		return mixedString;
+	}
+
+	if ( typeof components !== 'object' ) {
+		if ( throwErrors ) {
+			throw new Error(
+				`Interpolation Error: unable to process \`${ mixedString }\` because components is not an object`
+			);
+		}
+
+		return mixedString;
+	}
+
+	const tokens = tokenize( mixedString );
+
+	try {
+		return buildChildren( tokens, components );
+	} catch ( error ) {
+		if ( throwErrors ) {
+			throw new Error(
+				`Interpolation Error: unable to process \`${ mixedString }\` because of error \`${
+					error.message
+				}\``
+			);
+		}
+
+		return mixedString;
+	}
+}
+
+export default interpolate;
diff --git a/src/tokenize.es6 b/src/tokenize.js
similarity index 100%
rename from src/tokenize.es6
rename to src/tokenize.js