Keurig isn’t just about coffee anymore – here’s the groundbreaking technology

JAB is expected to square off against Nestlé, the Swiss company whose Nescafé and Taster’s Choice brands make it the world’s No. 1 coffee company.

For its part, JAB in 2013 paid almost 16 times EBITDA – a higher multiple than the Keurig transaction – to buy Douwe Egberts, which in July merged with Mondelez’s coffee brands to form Jacobs Douwe Egberts.

This is the largest coffee acquisition by JAB, which is controlled by Germany’s billionaire Reimann family.

The acquisition was approved unanimously by Keurig’s board, including its largest stakeholder Coca-Cola, which owns 17.4 percent, Keurig said in a statement.

Prior to the deal, Keurig’s stock had tumbled about 61% in the past year after the roll-out of its next generation hot brewer blocked the use of unlicensed pods and those that worked in the first generation machine.

FILE – In this October 7, 2010, file photo, a Green Mountain Coffee single-serving brewing cup is seen in a Keurig machine in Montpelier, Vt.

“JAB fully supports Keurig Green Mountain’s culture and values as we continue to pursue our commitment to deliver innovative beverage solutions for consumers at the touch of a button“, said Brian Kelley, President and CEO.

Keurig Green Mountain, which makes K-cups single-serve coffee pods, said it has accepted a $13.9bn (£9.2bn) bid. As CNN Money reports, an investment by Coca-Cola in the company earlier this year will now just break even, as its stock price has since surged 78 percent on the news. It also had cash and cash equivalents of almost $60 million and restricted cash and cash equivalents of about $30 million as of September 26, as well as outstanding debt of about $330 million and capital lease obligations and financing obligations of around $120 million, giving the company an enterprise value of close to $14.1 billion.

“We look forward to working with JAB, an experienced operator with a successful track record of investing in and growing consumer companies”, said Muhtar Kent, chairman and chief executive of The Coca-Cola Company, in the statement. The company has suffered from waning sales of its K-Cup containers and lower prices on brewers. The stake is valued at about $2.4 billion at the offer price.

Coke’s shares fell 25 cents to $43.04 in midday trading in NY.

The investment group includes backers of Netherlands-based Jacobs Douwe Egberts, a global tea and coffee company formed in 2014 as the combination of the coffee franchises of Oreo-maker Mondelez International and D.E Master Blenders.

Keurig would remain based in Waterbury after the sale. But what we do know is that management will be staying on and the company will continue to be headquartered in Vermont.