The owner of Peet’s Coffee & Tea is buying single-serve coffee pod company Keurig Green Mountain for $13.9 billion.
Waterbury, Vt.-based Keurig said Monday it will be acquired by an investor group led by JAB Holding for $92 a share, a premium of about 77.9 percent over Keurig’s closing stock price Friday.
After the deal closes, Keurig will be privately owned and will continue to operate independently with its current management team in Vermont.
JAB is a privately held group focused on long-term investments. The company has controlling stakes in high-fashion brand Jimmy Choo, beauty products manufacturer Coty Inc., and Emeryville, Calif.-based Peet’s. Peet’s recently acquired coffee companies Stumptown Coffee Roasters and Intelligentsia Coffee.
Keurig said the acquisition was done in partnership with “strategic minority investors” that are already shareholders in Netherlands-based global coffee and tea company Jacobs Douwe Egberts, including Mondelez International and entities affiliated with investment firm BDT Capital Partners. Jacobs Douwe Egberts owns Maxwell House and Keurig rival Tassimo, among other coffee and tea brands.
Keurig has faced criticism for its throwaway plastic pods, which were designed to eliminate the mess of coffee grounds.