Market Overview

Keurig Green Mountain Bought Out In $13 Billion Deal; Acquiring Firm Building Quite The Coffee Portfolio

Keurig Green Mountain Bought Out In $13 Billion Deal; Acquiring Firm Building Quite The Coffee Portfolio
  • Shares of Keurig Green Mountain Inc (NASDAQ: GMCR) lost more than 60 percent over the past year and traded as high as $141.69 over the past 52 weeks.
  • Keurig confirmed on Monday it will be acquired by an investor group led by JAB Holding Company.
  • JAB Holding Company is a private company with an already extensive portfolio of coffee products, including a majority stake in Peet's Coffee & Tea, Caribou Coffee Company, among other brands.

Keurig Green Mountain, formerly known as Green Mountain Coffee Roasters, said on Monday it has agreed to sell itself to a group of investors led by JAB Holding Company.

Keurig Green Mountain is best known for its single-cup at home coffee maker machines and its recently launched single-cup cold carbonated beverage maker. JAB Holding Company is a privately owned coffee powerhouse whose coffee portfolio includes a majority stake in Peet's Coffee & Tea, Caribou Coffee Company, Jacobs Douwe Egberts, among other leading brands.

Luxembourg-based JAB will pay $13.9 billion, or $92.00 per share, to acquire the Vermont-based Keurig. The agreement has already been unanimously approved by Keurig's Board of Directors and represents a near-80 percent premium to Keurig's closing stock price on Friday December 4.

Shares of Keurig closed Friday at $51.70. The stock was halted at 7:55 a.m. ET and resumed trading at 8:33 a.m. ET, recently up more than 70 percent at $90.23.

Keurig Green Mountain will continue to operate independently and will remain headquartered in Waterbury, Vermont. The transaction is expected to close in the first quarter of 2016.

Brian Kelley, President and CEO of Keurig Green Mountain 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."

The Coca-Cola Co (NYSE: KO), a minority owner of Keurig Green Mountain, approved of the transaction.

"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. We look forward to working with JAB, an experienced operator with a successful track record of investing in and growing consumer companies."

Posted-In: Brian Kelley Caribou Coffee Company coffee green mountain coffee roastersM&A News Pre-Market Outlook Movers Best of Benzinga


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