Coffee giant Keurig Green Mountain, pioneer of the now ubiquitous single-serve K-cup coffee model, is about to be under new management. The company announced today that it has agreed to be acquired by a JAB Holding Company-led investor group to the tune of $13.9 billion.
That investor group consists of JAB Holding Company (parent company of such brands as Caribou Coffee and Peet’s Coffee & Tea) along with minority investors like Mondelez International. For the investor group, the common interest is clear: building a bigger and more consolidated coffee empire. For Keurig Green Mountain, the price was right to fund further growth and coffee innovations and developments.
“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,” said Brian Kelley, President and CEO of Keurig Green Mountain, in a statement from the company. “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.”
“Keurig Green Mountain represents a major step forward in the creation of our global coffee platform,” added Bart Becht, Chairman at JAB. “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.”
Muhtar Kent, President and CEO of Keurig shareholder Coca-Cola Company, also commented that his business looks forward to continued collaboration with the Keurig brand. With unanimous approval from Keurig Green Mountain’s board of directors, the transaction is expected to close by the end of Q1 2016.