NEW YORK (Reuters) - JAB Holding Co has reached a agreement to buy U.S. single-serve coffee company Keurig Green Mountain Inc, the latest in a spate of deals that has expanded the Luxembourg-based private investor’s caffeine empire.
This is the largest coffee acquisition by JAB, which is controlled by Germany’s billionaire Reimann family. It bought Mondelez International’s Europe-focused coffee business in July for around $4 billion, combining it with DE Master Blenders, which it had bought for about $10 billion, to create the world’s largest pure-play coffee company.
With Keurig, JAB would expand its U.S. market presence substantially after its Peet’s Coffee & Tea unit bought specialty roasters Stumptown and Intelligentsia in October.
The Keurig purchase would help JAB inch closer to market leader Nestle SA. Nestle’s global coffee market share was 22.3 percent in 2014, while Mondelez, DE Master Blenders, Keurig and Peet’s held a combined 21 percent, according to data from market research firm Euromonitor.
JAB also has holdings in consumer brands like luxury shoe company Jimmy Choo and beauty products company Coty.
Here are what JAB’s coffee assets would be after the Keurig deal closes:
Location: Waterbury, Vermont
Transaction: To be purchased by JAB and a team of minority investors, including Mondelez and entities affiliated with BDT Capital Partners, for $13.9 billion, a premium of 78 percent over Keurig’s closing share price on Friday.
Coffee market presence: Keurig purchased 1.9 million 60-kg bags of green coffee in fiscal 2015, or roughly 4.3 percent of U.S. consumption of 43.9 million bags, although it sells some of its coffee in Canada.
It sold $3.6 billion worth of pods in fiscal 2015, and in 2013 was the leading U.S. coffee roaster by sales, according to Euromonitor.
Transaction: Peet’s Coffee & Tea purchased Intelligentsia for an undisclosed amount on in October. The deal is expected to close by year-end.
Market presence: 10 coffee bars in Chicago, Los Angeles and New York. Also offers coffee wholesale.
Location: Portland, Oregon
Transaction: Peet’s Coffee & Tea purchased Stumptown for an undisclosed amount on Oct. 6. Peet’s CEO Dave Burwick told Reuters on Oct. 30 that the deal was expected to close soon.
Market presence: Stumptown, a leader of the “third wave” of specialty coffee roasters, operates 10 stores across the United States and sells its wholesale beans and cold brew at grocery stores, restaurants and coffee shops.
Transaction: Mondelez International sold its coffee business to D.E. Master Blenders 1753 B.V., owned by JAB, for 3.8 billion euros ($4.11 billion) in July.
Mondelez retained a 44 percent stake in the new joint venture after selling its Carte Noire brand to Italian roaster Lavazza to appease antitrust regulators.
Market presence: The joint venture is the largest pure-play coffee company in the world with revenues of more than 5 billion euros ($5.51 billion). Brands include Jacobs, Senseo and Douwe Egberts, and it trails Nestle SA, maker of Nescafe and Nespresso, for the title of world’s largest coffee roaster, according to Euromonitor.
Transaction: Purchased by JAB in June for an undisclosed amount.
Market presence: 47 shops across Denmark.
Transaction: JAB purchased Espresso House from Herkules Capital for an undisclosed amount in June.
Market presence: 193 shops across Sweden and Norway.
Location: Minneapolis, Minnesota
Transaction: Purchased by JAB in December 2012 for $340 million; had previously been publicly traded
Market presence: 603 cafes worldwide, including 400 in the United States. In 2013, the company announced it would close 80 locations and convert 88 others to Peet’s shops.
Location: Emeryville, California
Transaction: Purchased by JAB, then called Joh. A. Benckiser, for $973.9 million in cash in July 2012; had previously been publicly traded
Market presence: Total 2014 revenue of $540 million, with 400 cafes across the United States. One of the top 10 U.S. coffee roasters by sales, with $165.2 million in sales in 2014, according to Euromonitor.
($1 = 0.9243 euros)
Reporting by Luc Cohen; Editing by Lisa Shumaker and Lisa Von Ahn