Keurig is Selling for $13.9 Billion

Keurig is Selling for $13.9 Billion

Earlier this week Keurig Green Mountain, the maker of pod-based, single-serve beverage methods, introduced a definitive merger agreement with a consortium of buyers led by JAB Holding Co. JAB is a privately held group with controlling stakes in Peet’s Espresso & Tea and Caribou Espresso Company together with a number of different coffee- and consumer-focused firms. JAB agreed to pay Keurig shareholders $92 per share in money, a premium of roughly 77.9% over Keurig’s closing stock worth on December 4th, 2015, valuing the corporate at roughly $13.9 billion. The settlement was unanimously permitted by Keurig’s board of administrators.

Keurig will function as an impartial entity, in line with JAB chairman Bart Becht, who hailed the deal as “a major step forward in the creation of our world coffee platform,” one which has quickly expanded in latest weeks with JAB-controlled Peet’s buying Stumptown Coffee and taking majority possession of Intelligentsia Espresso.

Though Euromonitor Worldwide reviews that the marketplace for pod-based drinks has slowed lately, Michael Schaefer, head of the market analysis agency’s drinks and foodservice division, believes that Keurig could be the lynchpin in JAB’s quest to turn into a global participant in premium espresso, serving as “a vehicle for JAB Holdings’ massive and rising portfolio of espresso manufacturers, significantly in markets where pod machine adoption stays low.”

About Harvill Industries

Harvill Industries is a process design, systems integration, sanitary equipment, and OEM service provider to sanitary industries including food, beverage, dairy, cosmetics, biotech, and pharmaceutical. Harvill provides positive displacement and centrifugal pumps, parts, and repairs. Harvill is an SPX distributor for pumps, valves, heat exchangers and repairs, homogenizers and repairs, CIP, fittings, and custom sanitary hose fabrication.

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