Fund acquires Keurig Green Mountain for $13.9 bn

KCup maker Keurig Green Mountain announced Monday that it has agreed to be acquired by an investor group for $13.9 billion.

A group led by JAB Holding will pay $92 per share for the Vermontbased company, which represents a premium of nearly 78 percent over Keurig’s closing price last Friday.

The deal, which has already been approved by the Keurig board, is expected to conclude in the first quarter of 2016, assuming regulators approve, the company said in a press release.

JAB already owns several prominent coffee brands, including Peet’s Coffee & Tea, Stumptown Coffee Roasters and Caribou Coffee.

“This transaction will deliver significant cash value for our shareholders and offers an exciting new chapter for our customers, partners and employees,” Keurig President and CEO Brian Kelley said.

JAB Chairman Bart Becht described Keurig Green Mountain as “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,” Becht said.

The CocaCola Company, which has a 17 percent stake in Keurig Green Mountain, welcomed the news.

“The CocaCola Company is fully supportive of this transaction,” Chairman and CEO Muhtar Kent said. “We have enjoyed a strong partnership with Keurig Green Mountain, and will continue our collaboration with JAB.”

Mondelez International, owner of chocolate maker Cadbury, will also retain its minority share in Keurig, whose shares 73 percent on Monday after the announcement.

Keurig Green Mountain will become a privately held company once the transaction is complete.