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JAB-led investor group to acquire Keurig Green Mountain for $13.9bn

Published 08 December 2015

Beverage systems provider Keurig Green Mountain will be acquired by JAB-led investor group for $13.9bn.

Keurig acquisition

A definitive merger agreement has been signed by the firms.

The acquisition has received the approval from Keurig Green Mountain's board of directors. JAB-led investor group will acquire each Keurig share for $92.00 in cash.

The acquisition agreement represents around 77.9% over Keurig Green Mountain's closing stock price on 4 December 2015.

Keurig Green Mountain will be acquired by JAB in association with strategic minority investors. Upon completion of the acquisition, Keurig Green Mountain will become privately owned. The headquarters of Keurig Green Mountain will remain at Waterbury in Vermont.

JAB chairman Bart Becht said: "Keurig Green Mountain represents a major step forward in the creation of our global coffee platform. It is a fantastic company that uniquely brings together premium coffee brands and new beverage dispensing technologies like the famous Keurig single serve machine. Keurig Green Mountain will operate as an independent entity to ensure it will further build on its coffee & technology strength and continue to serve all its partners to the best of its abilities."

Keurig Green Mountain president and CEO Brian Kelley said: "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 transaction is expected to be completed in the first quarter of 2016, subject to certain regulatory approvals and customary conditions.

The acquisition adds to JAB's portfolio, which includes a controlling stake in Jacobs Douwe Egberts, a coffee conglomerate with brands such as Bach Espresso and Bravo. JAB also has a controlling stake in Peet's Coffee & Tea in addition to Espresso House and Baresso Coffee A/S, reported New York Times.

Image: Keurig KOLD machine brews carbonated drinks. Photo: Courtesy of tiverylucky/FreeDigitalPhotos.net.