JAB completes acquisition of Keurig Green Mountain

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JAB completes acquisition of Keurig Green Mountain

Thu, 03/03/2016 - 9:06am -- tim

Vermont Business Magazine Waterbury-based Keurig Green Mountain, Inc (NASDAQ: GMCR) and JAB Holding Company today announced the successful completion of the acquisition of Keurig Green Mountain by a JAB-led investor group. The acquisition was announced on December 7, 2015, and the $13.9 billion transaction closed and became effective today. Under the terms of the transaction, Keurig Green Mountain stockholders will receive $92.00 per share in cash for each share they own. The transaction was approved by Keurig Green Mountain stockholders at a special meeting of stockholders held on February 24, 2016. As a result of the completion of the acquisition, Keurig Green Mountain's common stock ceased trading on the NASDAQ Global Select Market before the opening of market today. Keurig shareholders approved the deal last Wednesday.

In its proxy filings leading up to the shareholder meeting, Keurig said that JAB will keep the management and facilities in place after an acquisition, instead of consolidating them into other operations. Keurig employs 6,000 worldwide, mostly in North America, with 2,000 of those in Vermont. Revenues last year were $5.2 billion. The proxy filings also revealed that discussions on an acquisition were held with an unnamed company last September, but that the unnamed company did not make an offer. 

Keurig is Vermont's largest company. Last August it laid off about 200 workers here as part of a company-wide reduction of 330 workers in North America. Keurig's stock price, which peaked at $157.10 in November 2014, had slumped and bottomed out at $40.13 in November 2015 before recovering modestly to around $50 just prior to the acquisition announcement. Sluggish sales of its 2.0 coffee brewers and uncertainty of the success of the new Keurig Kold dampened enthusiasm for the volatile stock. 

JAB's interest Keurig is widely regarded as in expanding its global coffee-related businesses. Coca-Cola had a large holding in Keurig and was the driving force behind the Kold system. Coke also sold all of its shares in Keurig.

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Commentary: Coffee to go

Keurig Green Mountain, Inc.
Keurig Green Mountain is reimagining how beverages can be created, personalized, and enjoyed, fresh-made in homes and workplaces. Keurig Green Mountain is a personal beverage system company revolutionizing the beverage experience through the power of innovative technology and strategic brand partnerships. With an expanding family of more than 80 beloved brands and more than 575 beverage varieties, Keurig Green Mountain's Keurig® hot and Keurig® KOLD™ beverage systems deliver great taste, convenience, and choice at the push of a button. As a company founded on social responsibility, Keurig Green Mountain is committed to using the power of business to brew a better world through its work to build resilient supply chains, sustainable products, thriving communities, and a water-secure world.

For more information visit: www.KeurigGreenMountain.com.

JAB Holding Company
JAB Holding Company is a privately held group focused on long-term investments in companies with premium brands, attractive growth and strong margin dynamics in the Consumer Goods category. The group's portfolio includes a controlling stake in Jacobs Douwe Egberts (JDE), the largest pure-play FMCG coffee company in the world, a controlling stake in Coty Inc., a global leader in beauty, and controlling stakes in luxury goods companies including Jimmy Choo, Bally and Belstaff. JAB also has controlling stakes in Peet's Coffee & Tea, a premier specialty coffee and tea company, Caribou Coffee Company, a specialty retailer of high-quality premium coffee products, Einstein Noah Restaurant Group, Inc., a leading company in the quick-casual segment of the restaurant industry, Espresso House, the largest branded coffee shop chain in Scandinavia, and Baresso Coffee A/S, the first and largest branded coffee shop chain in Denmark. JAB also owns a minority stake in Reckitt Benckiser PLC, a global leader in health, hygiene and home products. In July 2015, Coty announced it had reached a definitive agreement to purchase some of Procter & Gamble's beauty brands to create one of the world's largest cosmetic companies. JAB is overseen by its three Senior Partners, Peter Harf, Bart Becht (Chairman) and Olivier Goudet (CEO). For more information, please visit the company's website at: http://www.jabholco.com.

WATERBURY, Vt.--(BUSINESS WIRE)-- Keurig Green Mountain, Inc