Keurig to be acquired by JAB-led group for US$13.9b

[CHICAGO] Keurig Green Mountain Inc, the maker of single-serving coffee brewers and pods, agreed to be acquired by a JAB Holding Co-led investor group for about US$13.9 billion in cash.

After buyout, Keurig will be privately owned and independently operated, the Waterbury, Vermont-based company said Monday in a statement. Keurig's board unanimously approved the deal, which is expected to close during the first quarter of 2016.

The deal brings a windfall to investors, who had seen their stock lose more than half its value this year. The company has suffered from waning sales of its K-Cup containers and lower prices on brewers. A new cold brewer also has been poorly received, and the strong dollar is hampering international sales. The purchase price of US$92 a share represents a 78 per cent premium to Keurig's closing price on Friday.

Minority investors in the JAB group include Mondelez International Inc and affiliates of BDT Capital Partners.

BLOOMBERG