World’s Largest Pure-play Coffee Company JAB Holdings Acquires Keurig Green Mountain

Published Date : Dec 08, 2015

The stocks of the home-brewing coffee company Keurig Green Mountain went up 73.26% on Monday after the company made the announcement that it was being acquired by JAB Holding, the investment arm of one of the wealthiest families of Germany, the Reimanns.

JAB Holdings is a privately held company that focuses on investing in companies with strong dynamics of margins, attractive growth potential, and premium brands. JAB Holdings currently run the world’s biggest pure play coffee company. With the acquisition of Keurig Green Mountain, JAB has extended its reach in the global coffee sector.

With the announcement that JAB had decided to acquire Keurig Green Mountain for US$92 per share, the shares of Keurig Green Mountain went up a whopping 78% on Monday as compared to its closing price on Friday. It has been reported that JAB holdings and partners are going to spend US$13.9 bn for completing the transaction.

Bart Becht, the Chairman of JAB Holdings said about the deal in a statement that the acquisition of Keurig Green Mountain represents a major step ahead for the company towards the creation of a global coffee platform.

JAB had entered in a deal in 2013 and bought D.E. Master Blenders 1753.  The company also later entered in a deal with Mondelez International for combining the respective coffee businesses of the two companies. That led to the creation of the company Jacobs Douwe Egberts in 2014. Earlier this year, JAB Holding had also bought the coffee roasting companies Intelligentsia Coffee and Stumptown.

Keurig Green Mountain is known for its K-cup coffee pods and also the machines that brew them. The acquisition spree makes JAB holdings worthy of becoming a key vendor in the coffee arena with the large coffee-roasting capability and the famed consumer brand, making it a dreadful rival for other major coffee brands.