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Keurig Green Mountain to go private in buyout

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WATERBURY, Vt. — Keurig Green Mountain Inc. is slated to go private in a $13.9 billion buyout deal by a JAB Holding Co.-led investor group.

The companies said Monday that the investor group plans to acquire Keurig Green Mountain for $92 per share in cash, which represents a premium of 77.9% over the coffee giant’s closing stock price on Dec. 4.

Keurig Green Mountain k-cupsJAB is acquiring Keurig Green Mountain in partnership with strategic minority investors that are already shareholders in global coffee and tea company Jacobs Douwe Egberts (JDE) B.V., including Mondelez International and entities affiliated with BDT Capital Partners.

“Keurig Green Mountain represents a major step forward in the creation of our global coffee platform,” commented Bart Becht, chairman at JAB. “It is a fantastic company that uniquely brings together premium coffee brands and new beverage dispensing technologies like the famous Keurig single-serve machine. Keurig Green Mountain will operate as an independent entity to ensure it will further build on its coffee & technology strength and continue to serve all its partners to the best of its abilities.”

The agreement has been unanimously approved by Keurig Green Mountain’s board. Plans call for the company to continue to be operated independently by its management team and employees and remain based in Waterbury, Vt.

“This transaction will deliver significant cash value for our shareholders and offers an exciting new chapter for our customers, partners and employees by combining Keurig Green Mountain with JAB’s global coffee platform,” stated Brian Kelley, president and chief executive officer of Keurig Green Mountain. “JAB fully supports Keurig Green Mountain’s culture and values as we continue to pursue our commitment to deliver innovative beverage solutions for consumers at the touch of a button.”

Known for its Keurig single-serve coffee system, K-Cup coffee pods and, more recently, the Keurig KOLD cold beverage systems, Keurig Green Mountain has more than 80 brands and over 575 beverage varieties.

“Keurig Green Mountain is a strategic asset that provides immediate access to the U.S., the largest coffee market in the world, and to on-demand, the fastest-growing segment of the market,” noted Irene Rosenfeld, chairman and CEO of Mondelez. “By leveraging our existing investment in JDE and not contributing incremental capital, we have the opportunity to diversify our participation in the global coffee category while continuing to invest in our core snacking business.”

The transaction is expected to close in the first calendar quarter of 2016, pending shareholder and regulatory approvals and other customary closing conditions.

“The Coca-Cola Company is fully supportive of this transaction,” stated Muhtar Kent, chairman and CEO of The Coca-Cola Co., which holds a minority interest in Keurig Green Mountain. “We have enjoyed a strong partnership with Keurig Green Mountain and will continue our collaboration with JAB in order to capitalize on the growth opportunities in the single-serve, pod-based segment of the cold beverage industry. We look forward to working with JAB, an experienced operator with a successful track record of investing in and growing consumer companies.”

JAB Holding’s investments include Coty Inc., Reckitt Benckiser (RB), Jacobs Douwe Egberts, Peet’s Coffee & Tea and Caribou Coffee, among other well-known brands.


ECRM_06-01-22


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