Ryan Gaumont reports that Keurig Green Mountain, a pioneer in the single-serve coffee world, is changing hands. The company will be privately owned by JAB Holding Company, a privately-held fund that is closely associated with the Reimann family of Austria. The all cash purchase price is $13.9 billion. Each share will be bought for $92, a price considerably higher than the closing price last Friday.
The purchase breathes new life into Keurig, which had suffered declining sales in the past year along with a decline in stock prices. JAB Holding has been acquiring coffee companies around the world and, with the acquisition of Keurig, owns a significant share of the coffee business worldwide. Its coffee interests include a controlling stake in Jacobs Douwe Egberts, a coffee conglomerate that owns international brands like Bach Espresso and Bravo. JAB also has a controlling stake in Peet’s Coffee & Tea, which bought Stumptown Coffee Roasters this year, as well as Espresso House and Baresso Coffee A/S.
The acquisition is also a good deal for the Coca-Cola Company. Coke owns a 17% share in the coffee company and will make a profit of about $25 million on its investment in Keurig.
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