USA: Keurig Green Mountain to be bought by JAB Holding
Coffee firm Keurig Green Mountain, the firm behind the Keurig Hot and Keurig KOLD beverage systems, has accepted a bid of $13.9 billion for the business from private German fund JAB Holding.
The deal established the payment of $92 per share, in an agreement that represents a premium of approximately 77.9% over Keurig Green Mountain's closing stock price on 4th December 2015, according to a company statement.
Company president Brian Kelley commented: "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. 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".
JAB Holding president Bart Becht added: "Keurig Green Mountain represents a major step forward in the creation of our global coffee platform. 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".
In the coffee space, JAB, which is "focused on long-term investments in companies with premium brands, attractive growth and strong margin dynamics in the Consumer Goods category", has a controlling stake in the recently-formed Jacobs Douwe Egberts as well as Peet's Coffee & Tea and Caribou Coffee.
Source: Keurig Green Mountain