Green Mountain acquires Diedrich
May 12, 2010
by Eric Schroeder
WATERBURY, VT. — Green Mountain Coffee Roasters, Inc. on May 11 acquired Diedrich Coffee, Inc. for $35 per share of common stock in cash, pursuant to a cash tender offer and a “short form” merger. The total transaction, which was first agreed to in early December, is valued at approximately $300 million.
As a result of the merger, Diedrich Coffee will be integrated into GMCR’s Specialty Coffee business unit and will operate manufacturing and distribution facilities in Waterbury and Essex, Vt.; Castroville, Calif.; Knoxville, Tenn.; Sumner, Wash.; and Toronto.
“We are pleased to welcome Diedrich Coffee to the GMCR family,” said Lawrence J. Blanford, president and chief executive officer of GMCR. “We believe this combination provides significant growth opportunities and further advances GMCR’s objective of becoming a leader in the coffee and coffeemaker businesses.
“By taking the next logical step beyond our already successful licensing agreement with Diedrich Coffee, we are bringing in house three strong, complementary brand platforms — Diedrich, Gloria Jean’s and Coffee People — and augmenting the growing GMCR beverage brand portfolio. In addition, we are gaining manufacturing and distribution facilities in California, which will enable us to more effectively reach consumers in this region.”