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Keurig to Be Bought by JAB-Led Investor Group for $13.9 Billion

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Keurig Green Mountain, Inc. and JAB Holding Company have entered into a definitive merger agreement under which a JAB-led investor group will acquire Keurig Green Mountain for $92.00 per share in cash, or a total equity value of approximately $13.9 billion. The agreement, which has been unanimously approved by Keurig Green Mountain’s Board of Directors, represents a premium of approximately 77.9% over Keurig Green Mountain’s closing stock price on December 4, 2015.

“The Coca-Cola Company is fully supportive of this transaction”

Keurig, a maker of single-serve coffee brewers, will be privately owned and independently operated following the buyout, according to a statement Monday. The purchase price of $92 a share is 78 percent higher than the company’s closing price on Friday. The premium is the largest in beverage-industry history for any deal above $5 billion, according to data compiled by Bloomberg.

The deal provides a bounty to investors after weak results and dimming prospects weighed on the stock this year. The company has suffered from waning sales of its K-Cup containers and lower prices on brewers. And a new cold brewer is rolling out more slowly than expected. The strong dollar also is hampering international sales.

JAB is a closely-held investment firm based in Luxembourg that manages the $16 billion fortune of Austria’s Reimann family. It’s run by a trio of seasoned consumer-industry executives who are plotting a challenge to global leader Nestle in the coffee industry. Its holdings outside of food include Jimmy Choo shoes and Coty fragrances.

1 Comment

1 Comment

  1. Hires Root Beer

    February 12, 2018 at 5:16 am

    J.A.B. Holding Company bought out Dr. Pepper which owns Hires Root Beer. Dr. Pepper pretty much has killed Hires, which was the most popular root beer before the 1980’s. What will happen to Hires Root Beer?

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