JAB Holding Acquiring Keurig Green Mountain for $13.9 Billion

Keurig Green Mountain is being acquired by JAB Holding Company in a deal worth $13.9 billion USD. Minority investors in the deal include shareholders of Jacobs Douwe Egberts such as Mondelez International and entities affiliated with BDT Capital Partners, the private financial arm of BD&T Company.

In an announcement today, JAB said that when the transaction closes — most likely in the first quarter of next year — Keurig Green Mountain will continue to be operated independently by the company’s management team and employees, with headquarters remaining in Waterbury, Vt.

The deal, which equates to $92 per share in cash, represents an approximately 77.9 percent increase over Keurig Green Mountain’s Dec. 4 closing price.

“Keurig Green Mountain represents a major step forward in the creation of our global coffee platform,”  JAB Chairman Bart Becht said. “It is a fantastic company that uniquely brings together premium coffee brands and new beverage dispensing technologies like the famous Keurig single serve machine.”

In the span of just three years, JAB has positioned itself as one of the world’s largest investors in coffee brands through acquisitions of Peet’s Coffee & Tea in 2012, Caribou Coffee in 2012 and D.E. Master Blenders 1753 in 2013. With the 2014 consolidation of the coffee portfolios of D.E. Master Blenders and Mondelez International in 2014, the company assumed a majority stake in Jacobs Douwe Egberts.

This year alone, JAB Holding Company also acquired Espresso House, the largest Nordic espresso chain, for approximately $328 million, and has been involved with Peet’s high-profile acquisitions of Portland’s Stumptown Coffee Roasters and Chicago’s Intelligentsia Coffee.

“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,” Keurig Green Mountain Chairman and CEO Brian Kelley said. “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.”