US-baed Keurig Green Mountain has agreed to be taken over by a group of private investors led by JAB Holding in a $13.9 billion deal that will see the single-serve coffee machine maker become part of a global coffee network.
The cash transaction, which needs approval by Keurig’s shareholders and has been unanimously backed by the board, values the coffee machine maker 92 dollars per share, at a premium of around 77.9% over Keurig’s closing price on December 4.
JAB Holding is taking over Keurig in partnership with minority investors that are already shareholders in Jacobs Douwe Egberts B.V., including U.S. food group Mondelez International and entities linked to BDT Capital partners. JAB has controlling stakes in several renowned coffee brands, including U.S.-based Peet’s Coffee & Tea, coffee retailer Caribou Coffee Company, and Scandinavian coffee shop chain Espresso House. JAB also controls beauty leader Coty and luxury houses Jimmy Choo, Belstaff and Bally.
“Keurig Green Mountain represents a major step forward in the creation of our global coffee platform,” JAB chairman Bart Becht said.
After the deal, expected to close in the first quarter of 2016, Keurig will be privately owned and continue to be managed independently by the company’s management and employees.
Coca-Cola, which owns about 17% of Keurig and partners with Keurig for its cold-drink machines, welcomed the agreement and added it will continue its collaboration with JAB.
Italian coffee maker Lavazza, formerly a shareholder in Keurig, has an industrial partnership with the group including for the new Keurig “Rivo” cappuccino and latte system.