Keurig To Be Acquired By JAB Holding For $13.9B

Keurig Green Mountain, Inc. is being acquired by JAB Holding Company and will become part of the company’s global coffee portfolio. Under a definitive merger agreement, 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 has been unanimously approved by Keurig Green Mountain’s board of directors.

JAB is acquiring Keurig Green Mountain in partnership with strategic minority investors who are already shareholders in Jacobs Douwe Egberts B.V., including Mondelez 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 will remain headquartered in Waterbury, VT.

Bart Becht, chairman at JAB, said, “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 and technology strength and continue to serve all its partners to the best of its abilities.”

Brian Kelley, president and CEO of Keurig Green Mountain stated, “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.”

Coca-Cola, which has partnered with Keurig on the Kold beverage appliance, voiced support for the deal. “The Coca-Cola Company is fully supportive of this transaction,” said Muhtar Kent, chairman and CEO, The Coca-Cola Company. “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.”

The transaction is expected to close during the first calendar quarter of 2016.

JAB Holding Company is a privately held group focused on premium brands in the consumer goods category. The group’s portfolio includes a controlling stake in Jacobs Douwe Egberts (JDE), a consumer goods coffee company, a controlling stake in Coty Inc., a 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 Company, a specialty retailer of high-quality premium coffee products, 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.