JAB to Acquire Keurig for $13.9 Billion

Deal to close in the first calendar quarter of 2016
December 7, 2015David Gill

Keurig WATERBURY, Vt.-Keurig Green Mountain and JAB Holding Co., a privately held investor group, have entered into an agreement whereby JAB will acquire Keurig for $92 a share, or a total of $13.9 billion.

“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,” said Brian Kelley, Keurig’s president and CEO. “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.”

JAB is acquiring Keurig Green Mountain in partnership with strategic minority investors who are already shareholders in Jacobs Douwe Egberts, including Mondelēz International and entities affiliated with BDT Capital Partners. At the close of the transaction, which is expected to take place during the first calendar quarter of 2016, Keurig will be privately owned and will continue to be operated independently by the company’s current management team and employees. It will also maintain its headquarters here.

“Keurig Green Mountain represents a major step forward in the creation of our global coffee platform,” said Bart Becht, JAB’s chairman. “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.”

Along with Jacobs Douwe Egberts, JAB’s portfolio includes controlling stakes in Peet’s Coffee & Tea; Caribou Coffee Co.; Einstein Noah Restaurant Group, a company in the quick-casual segment of the restaurant industry; Espresso House, a coffee-shop chain in Scandinavia; and Baresso Coffee, a coffee-shop chain in Denmark. JAB also has controlling stakes in beauty products provider Coty and luxury-goods companies Jimmie Choo, Bally and Belstaff. It also owns a minority stake in Reckitt Benckiser PLC, a supplier of health, hygiene and home products.

David GillDavid Gill | Contributing Editor

David Gill is a contributing editor to HFN.

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