Majority-Stake Owner Of Caribou Coffee To Buy Keurig

Majority-Stake Owner Of Caribou Coffee To Buy Keurig

An investor group lead by JAB Holding Company will buy the K-Cup and quick-to-brew coffee systems manufacturer for $13.9 billion.

Caribou Coffee owner JAB Holdings Company said on Monday it would lead an investor group in a $13.9 billion acquisition of Green Mountain Keurig, the maker of popular single-cup coffee brewing systems.
 
The Waterbury, Vermont-based coffee company will be purchased for $92 a share in cash, a nearly 78 percent premium over its closing stock price on December 4. The transaction is still subject to approval from a majority of Keurig’s shareholders; however, if accepted, Keurig would become a privately owned company.
 
JAB Holding Co., which is headquartered in Luxembourg, offered a similar double-digit premium in its December 2012 purchase of Caribou Coffee. Bought at $16 a share, JAB investors paid roughly 30 percent over the Brooklyn Center-based coffeehouse chain’s closing stock price from the previous day. That acquisition amounted to approximately $340 million.
 
Bart Becht, chairman of JAB Holding Co. called the Keurig deal in a statement “a major step forward in the creation of our global coffee platform.” To date, JAB Holding Co. holds ownership in a number of coffee brands including Peet’s Coffee & Tea (based in California), Einstein Bros. (Colorado), Douwe Egberts (Netherlands), Espresso House (Sweden) and Baresso Coffee A/S (Denmark).