(Updates to add company targets 2020 IPO)
AMSTERDAM, Dec 17 (Reuters) - The German investor that owns Peet’s Coffee and Jacobs Douwe Egberts said on Tuesday it would merge the two into a single coffee and tea company which it would seek to list on the stock market in an initial public share offering (IPO) in 2020.
JAB Holding said in a statement the newly-formed company JDE Peet’s, which also owns the Pickwick, Senseo, Tassimo and L’OR brands, will have operations in 140 countries and combined annual revenue of 7 billion euros.
JAB did not say how large a stake it would sell, where it would list the company, nor what valuation it was seeking. It did however say that it intended to remain the controlling shareholder of JDE Peet’s after the IPO.
The Financial Times reported earlier on Tuesday that the company plans to float a stake worth around 3 billion euros on Amsterdam’s Euronext.
Casey Keller, the CEO of Peet’s, will become CEO of JDE Peet’s while JDE CEO Frederic Larmusea will remain as an advisor.
The bulk of JDE Peet’s business is in selling roasted coffee and prepackaged coffee pods and pads. It will compete with Nestle, JM Smucker and Keurig Dr. Pepper -- in which JAB also holds a controlling stake -- as well as retail giant Starbucks.
JAB bought Peet’s in 2012 for $977.6 million, and then bought Douwe Egberts for $9.8 billion in 2013.
In 2014 it merged Douwe Egberts with the coffee businesses of Mondelez International to create JDE. Mondelez holds a 26 percent sake in JDE. (Reporting by Toby Sterling and Siddharth Cavale; Editing by Kirsten Donovan and David Evans)
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