Van Houtte roasts and markets gourmet coffee for home and office consumption, and distributes it through Van Houtte's direct-to-store delivery and coffee services networks [image-nocss] in Canada and the United States. GMCR expects to continue operations from Van Houtte's current location in Montreal under the leadership of Gerard Geoffrion, Van Houtte's president and CEO.
Van Houtte's Canadian brands include Van Houtte, Brulerie St. Denis, Les Cafes Orient Express Coffee and Br alerie Mont Royal. Van Houtte also produces K-Cup portion packs for the Keurig Single-Cup Brewing System under the Van Houtte, Bigelow and Wolfgang Puck K-Cup brands.
As previously announced, GMCR expects the Van Houtte acquisition to be neutral to slightly dilutive to earnings per share in the first 12 months after closing, and accretive thereafter. GMCR expects to adjust its fiscal 2011 estimates to include the effects of the acquisition when it reports its fiscal first quarter results.
As also previously announced, GMCR has financed the Van Houtte acquisition through a combination of cash on hand and new debt financing. GMCR has entered into $1.45 billion in senior credit facilities, consisting of a term loan A facility in an aggregate amount of $250 million, a term loan B facility in an aggregate amount of $550 million, a U.S. revolving credit facility in an aggregate amount of $450 million and an alternative currency revolving credit facility in an aggregate amount of $200 million.
GMCR has used a portion of the proceeds from these senior credit facilities to repay GMCR's borrowings under its former credit facility and to pay the Van Houtte acquisition purchase price. GMCR also will use a portion of the proceeds from these senior credit facilities to support GMCR's ongoing growth.
"We are very pleased to welcome Van Houtte and its approximately 1,800 employees into the GMCR family," said Lawrence J. Blanford, president and CEO of Waterbury, Vtased GMCR. "We are confident that Van Houtte, with its well known portfolio of brands and strong management team, will help drive GMCR's future success in Canada and throughout North America."
GMCR's operations are managed through two business units. The specialty coffee business unit produces coffee, tea and hot cocoa from its family of brands, including Tully's Coffee, Green Mountain Coffee, Newman's Own Organics coffee, Timothy's World Coffee, Diedrich, Coffee People and Gloria Jeans, a trademark licensed to GMCR for use in North America and owned by Gloria Jeans Coffees International Pty. Ltd. The Keurig business unit is a pioneer and leading manufacturer of gourmet single-cup brewing systems. K-Cup portion packs for Keurig Single-Cup Brewers are produced by a variety of roasters, including Green Mountain Coffee, Tully's, Timothy's and Diedrich.
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