Douwe Egberts owner JAB Holding Company rivals Nestle market share with $13.9bn Keurig Green Mountain deal
Drinks company Keurig Green Mountain has been taken private by coffee specialist Douwe Egberts owner JAB Holding Company in a deal worth $13.9bn (£9.2bn).
JAB, an investment vehicle owned by Germany’s Reimann family, paid $92 per share in cash for Keurig, representing a premium of around 78 per cent over its closing price on 4 December.
The deal is the latest in a series of purchases made by JAB to build up its coffee offering. In July, it bought Mondelez International's Europe-focused coffee business in July for around $4bn.
Purchasing Keurig will bring JAB closer to coffee market leader Nestle – in 2014, Nestle's global market share was 22.3 per cent, while Mondelez, DE Master Blenders, Keurig and Peet's held a combined 21 per cent, according to data from market research firm Euromonitor – and Keurig's brand of single-serve coffee machines will help JAB compete with Nestle’s Nespresso brand.
“Keurig Green Mountain represents a major step forward in the creation of our global coffee platform,” said JAB boss Bart Becht.
“It is a fantastic company that uniquely brings together premium coffee brands and new beverage dispensing technologies like the famous Keurig single serve machine. Keurig Green Mountain will operate as an independent entity to ensure it will further build on its coffee & technology strength and continue to serve all its partners to the best of its abilities."
Meanwhile, Keurig chief executive Brian Kelley, said: “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."