WATERYBURY, Vt. -- The at-home coffee and soda markets got a boost Monday as JAB Holding Co. acquired Keurig Green Mountain Inc. with the goal of expanding its coffee platform and new beverage dispensing technologies, including Keurig Kold, the recently unveiled soda-brewing machine designed for home use.
“Keurig Green Mountain represents a major step forward in the creation of our global coffee platform," said Bart Becht, chairman at JAB, a privately held group focused on long-term investments in companies with premium brands, attractive growth and strong margin dynamics in the consumer goods category. "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 and technology strength and continue to serve all its partners to the best of its abilities.”
Under a definitive merger agreement announced Monday, a JAB-led investor group will acquire Keurig Green Mountain for $92 per share in cash, or a total equity value of approximately $13.9 billion. The agreement, which has been unanimously approved by Keurig Green Mountain’s board of directors, represents a premium of approximately 77.9% over Keurig Green Mountain’s closing stock price on Dec. 4, 2015.
JAB is acquiring Keurig Green Mountain in partnership with strategic minority investors who are already shareholders in Jacobs Douwe Egberts B.V., including Mondelēz International and entities affiliated with BDT Capital Partners. At the close of the transaction, Keurig Green Mountain will be privately owned and will continue to be operated independently by the company’s management team and employees.
Keurig Green Mountain's headquarters will remain in Waterbury, Vt.
“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," said Irene Rosenfeld, chairman and CEO of Mondelēz International. "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 to deliver significant value for our shareholders over the long term.”
The Coca-Cola Co. also will maintain a partnership with Keurig Green Mountain, whose Keurig Kold can dispense several Coca-Cola products, including its flagship brands, in consumers' homes.
“The Coca-Cola Co. is fully supportive of this transaction,” said Muhtar Kent, chairman and CEO, Coca-Cola Co. “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.”
Keurig Green Mountain is "reimagining how beverages can be created, personalized and enjoyed, fresh-made in homes and workplaces." The company manufactures personal beverage systems aimed at "revolutionizing the beverage experience through the power of innovative technology and strategic brand partnerships."
JAB Holding Co.'s portfolio includes a controlling stake in Jacobs Douwe Egberts, the largest pure-play fast-moving consumer goods (FMCG) coffee company in the world, a controlling stake in Coty Inc., a global leader in beauty, and controlling stakes in luxury goods companies including Jimmy Choo, Bally and Belstaff. JAB also has controlling stakes in Peet's Coffee & Tea, a premier specialty coffee and tea company, Caribou Coffee Co., a specialty retailer of high-quality premium coffee products, Einstein Noah Restaurant Group Inc., a leading company in the quick-casual segment of the restaurant industry, Espresso House, the largest branded coffee shop chain in Scandinavia, and Baresso Coffee A/S, the first and largest branded coffee shop chain in Denmark.
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