Keurig Green Mountain, Inc., a manufacturer of personal coffee makers and single-serve beverage pods, has agreed to be sold to private equity firm led by JAB Holding Company for $13.9 billion.
JAB is acquiring Keurig in partnership with strategic minority investors who are already shareholders in Jacobs Douwe Egberts B.V., including Mondelez International and entities affiliated with BDT Capital Partners.
Following the transaction, Keurig will become a privately owned company and continue to be operated independently by the company’s management team and employees. Keurig Green Mountain will remain headquartered in Waterbury, VT.
“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,” says Brian Kelley, president and CEO of Keurig. “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’s sales have struggled in recent months. The USA Today reported the company’s revenue fell 13 percent to $1.04 billion in the fourth quarter this year which included a 9 percent decrease in pod sales. In order to build sales again, the company branched outside of its coffee roots by launching its first cold-brew drink system this year and partnering with Campbell’s Soup to create single-serve soup meals.
The Coca-Cola company, Keurig’s largest shareholder, says it is fully supportive of the transaction and will continue to collaborate with JAB to grow the pod-based segment of the cold beverage industry.
The transaction is expected to close during the first quarter of 2016.