WATERBURY, VT. — JAB Holding Co. has agreed to acquire Keurig Green Mountain, Inc. 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.
As part of the acquisition, JAB is partnering with strategic minority investors who are already shareholders in Jacobs Douwe Egberts B.V., including Mondelez International and entities affiliated with BDT Capital Partners. Once the acquisition is finalized, Keurig Green Mountain will be privately owned and will continue to be operated independently by the company’s management team and employees. The company will remain headquartered in Waterbury.
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| Bart Becht, chairman of JAB |
“Keurig Green Mountain represents a major step forward in the creation of our global coffee platform,” said Bart Becht, chairman of 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 and technology strength and continue to serve all its partners to the best of its abilities.”
JAB Holding is no stranger to the food and beverage industry. The company also has a majority stake in Peet’s Coffee & Tea, Inc., Caribou Coffee Co. and D.E Master Blenders 1753 N.V.
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| Brian Kelley, president and c.e.o. of Keurig Green Mountain |
Brian Kelley, president and chief executive officer of Keurig Green Mountain, added, “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.”
The Coca-Cola Co., which owns a 17.4% stake in Keurig Green Mountain and was instrumental in the launch of Keurig Kold, a machine that allows customers to make single-serve soda and carbonated beverages, including Coke, Dr Pepper, Sprite and flavored seltzer water, is supportive of the transaction.
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| Muhtar Kent, chairman and c.e.o. of Coca-Cola |
“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,” said Muhtar Kent, chairman and c.e.o. of Coca-Cola. “We look forward to working with JAB, an experienced operator with a successful track record of investing in and growing consumer companies.”
The transaction is not subject to a financing condition and is expected to close during the first quarter of 2016, subject to customary closing conditions, including receipt of regulatory approvals.
Fiscal 2015 was a difficult one for Keurig Green Mountain as its installed base of brewers in homes slowed and competition in the market for pods increased. For the year ended Sept. 26, net income fell 16% to $498,638,000, equal to $3.17 per share on the common stock. Sales for the year fell 4% to $4,520,031,000.
