Published on : Dec 09, 2015
A billionaire family in Europe that is on a caffeine-fueled spree to push forward the global coffee industry, with a huge bet announced earlier I n the week that an acquisition worth US$13.9 bn has happened to take over Keurig Green Mountain.
The deal that happened in white cash, which offered a 78% premium took both analysts and investors by surprise. Lately, Keurig was facing its own challenges, such as a saturated market for the company’s single-serving coffee brewers, slowed sales pods and a stalled new product.
However, the JAB Holding Company, which is the investment arm of the Reimann family that are heirs to Joh.a.Benckiser GmbH, the German consumer goods company, is in its quest stretched over a period of three years to take over the global coffee industry. As the next step to survive in the market, Keurig that enjoys a large majority of the single-serve market in the U.S., as a natural step came to the Reimann.
JAB will be leading the investor group in the deal to acquire Keurig, which is priced at US$92/ share in cash, as stated by the company earlier in the week. With the deal coming into effect, Keurig joins JAB with other companies including Jacobs Douwe Egberts, which is a coffee conglomerate having ownership of the international brands such as Bach Espresso and Bravo. JAB also has a controlling stake in the Peet’s Coffee & Tea, which took over Stumptown Coffee Roaster earlier in this year and also Baresso Coffee A/S and Espresso House.
As stated by the chairman of JAB, the acquisition of Keurig Green Mountain is a major step ahead in the creation of the global platform that the company has been vying for. Consequent upon the merger, Keurig Green Mountain will be functional as an independent entity so that it can further strengthen its coffee and technology solidity and can continue to serve the partners of the company to the best of its abilities.